Tokyo, July 25, 2008 - (JCN Newswire) - Honda Motor Co., Ltd. announced its consolidated financial results for the fiscal first quarter ended June 30,
2008.
Consolidated net sales and other operating revenue amounted to JPY 2,867.2 billion, a decrease
of 2.2% due to factors including the negative currency translation effect.
Consolidated operating income, which amounted to JPY 221.3 billion, remained at approximately
the same level compared to the same quarter a year ago, due to a decrease in incentives for
automobile business in North America, increased profit mostly from increased automobile unit
sales, and cost reduction efforts, despite the negative impact of exchange rates, the impact of
increased raw material costs, and increases in selling, general and administrative (SG&A)
expenses.
Honda set an all-time record for the first quarter for income before income taxes and net
income as well as an all-time record for any quarter for equity in income of affiliates.
At the board of directors meeting held today, Honda resolved to pay JPY 22 per share for the
fiscal first quarter dividend with the record date of June 30, 2008. The total dividend to be
paid for the entire fiscal year is expected to be JPY 88 per share.
Results for the Fiscal 1st Quarter Ended June 30, 2008
(*record high for the fiscal first quarter, **record high for any quarter)
JPY (billions)
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1st Quarter ended Difference
6/30/07 6/30/08 (% change)
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Net sales and other
operating revenue 2,931.1 2,867.2 -63.9 (-2.2)
Operating income 221.6 221.3 -0.3 (-0.2)
Income before income taxes 218.2 235.0* +16.8 (+7.7)
Equity in income of affiliates 37.0 38.1** +1.1 (+3.2)
Net Income 166.1 179.6* +13.4 (+8.1)
Basic net income
per common share JPY 91.38 98.98* +7.60 (+8.3)
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(Honda's average rates: JPY 105 = U.S. dollar 1 / JPY 164 = Euro 1)
Consolidated unit sales: The motorcycle and automobile business set all-time record unit sales
for the fiscal first quarter. (Consolidated unit sales are the total of sales of finished
products of Honda and its consolidated subsidiaries, and sales of parts for local production at
Honda's affiliates accounted for under the equity method.)
- Motorcycles: 2.715 million units (+20.5%); the increase was due to increased sales in Asia
and the "Other Region" which includes Brazil. (Unit sales of approximately 1.21 million units
of Honda-brand motorcycle products are not included in the total listed above, in conformity
with U.S. generally accepted accounting principles, because they are manufactured and sold by
overseas affiliates accounted for under the equity method, but do not use any parts supplied by
Honda and its consolidated subsidiaries.)
- Automobiles: 962 thousand units (+1.7%); the tenth consecutive year for an increase was due
to increased sales in Asia and the "Other Region" which includes Brazil.
- Power Products: 1.339 million units (-12.4%); the decrease was due mainly to decreased sales
in North America and Europe.
Consolidated net sales and other operating revenue amounted to JPY 2,867.2 billion, a decrease
of 2.2% due to factors including the negative currency translation effect.
Consolidated operating income, which amounted to JPY 221.3 billion, remained at approximately
the same level compared to the same quarter a year ago, due to a decrease in incentives for
automobile business in North America, increased profit mostly from increased automobile unit
sales, and cost reduction efforts, despite the negative impact of exchange rates, the impact of
increased raw material costs, and increases in selling, general and administrative (SG&A)
expenses.
Consolidated income before income taxes totaled JPY 235.0 billion (+7.7%), increasing in the
fiscal first quarter for the third consecutive year.
Equity in income of affiliates totaled JPY 38.1 billion (+3.2%), increasing in the fiscal
first quarter for the ninth consecutive year and achieved an all-time record for any quarter
due mainly to increased income of affiliates in China accounted for under the equity method.
Consolidated net income totaled JPY 179.6 billion (+8.1%), increasing in the fiscal first
quarter for the third consecutive year.
Forecasts for the Fiscal Year Ending March 31, 2009
Honda plans to sell 10.455 million units of motorcycles (+12.2%), 4.08 million units of
automobiles (+3.9%) and 6.12 million units of power products (+1.0%). (Unit sales of
approximately 4.85 million units of Honda-brand motorcycle products are not included in this
total, in conformity with U.S. generally accepted accounting principles, because they are
manufactured and sold by overseas affiliates accounted for under the equity method, but do not
use any parts supplied by Honda and its consolidated subsidiaries.)
Honda will conduct its business operations with target of the full year financial results
forecast for the fiscal year ending March 2009 as described below with assumption of the
average currency exchange rate of JPY 101 = U.S. dollar 1 (First half: JPY 103, Second half:
JPY 100) and JPY 162 = Euro 1 for the entire year. (First half: JPY 165, Second half: JPY
160)
JPY (billions)
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Forecasts Ref: Prev
Year ended year ending Difference forecasts
3/31/2008 3/31/2009 (% change) 4/25/2008
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Net sales and other
operating revenue 12,002.8 12,130.0 +127.1 (+1.1) 12,140.0
Operating income 953.1 630.0 -323.1(-33.9) 650.0
Income before income
taxes 895.8 660.0 -235.8(-26.3) 675.0
Equity in income of
affiliates 118.9 117.0 -1.9 (-1.6) 106.0
Net Income 600.0 490.0 -110.0(-18.3) 490.0
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About Honda Motor Co., Ltd.
Honda Motor Co., Ltd. (TSE:7267/NYSE:HMC/LSE:HNDA.L) is one of the leading manufacturers of
automobiles and power products and the largest manufacture of motorcycles in the world. Honda
has always sought to provide genuine satisfaction to people worldwide. The result is more than
120 manufacturing facilities in 30 countries worldwide, producing a wide range of products,
including motorcycles, ATVs, generators, marine engines, lawn and garden equipment and
automobiles that bring the company into contact with over 19 million customers annually. For
more information, please visit http://world.honda.com .
Source: Honda Motor Co., Ltd.
Contact:Honda Motor Co., Ltd.
Media Inquiries
corporate_pr@hm.honda.co.jp
+81-3-5412-1512
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