Honda Announces Consolidated Financial Summary for the Fiscal First Half Ended September 30, 2006
 |
TOKYO - October 25, 2006: JCN Newswire reported Honda Motor Co., Ltd. today announced that in the first half of the current fiscal year, it realized a sixth consecutive all-time record for consolidated net sales and other operating revenue (herein referred to as "revenue") due to increased sales revenue in all business areas. Operating income increased due to increased profit from higher revenues, and the positive effects from the depreciation of the Japanese Yen, despite the changes in the model mix, soaring raw materials costs exceeding continued cost reduction efforts and an increase in selling, general and administrative (SG&A) expenses. Honda realized an all-time record for first half results for operating income, income before income taxes, net income and equity in income of affiliates.
At the board of directors meeting held on October 25, 2006, Honda resolved to pay interim dividend of 30 yen, and to introduce quarterly dividend in the third quarter with the dividend date of record as December 31, 2006, to allow for more frequent payouts to its shareholders. The third quarter dividend is to be 17 yen per share. With a year-end dividend of 17 yen, the total dividend to be paid for the current fiscal year will be 64 yen per share. (As of July 1, 2006, one share of the Company's common stock was split into two. Had the stock split not been carried out, interim dividend would have been JPY 60 per share, which is an increase of JPY 20 per share and the annual dividend would have been JPY 128, which is an increase of JPY 28 per share.)
I. Results for Fiscal First Half ended Sept. 30, 2006
Yen (billions)
------------------------------------------------------------------------
First Half ended First Half ended Difference
Sept. 30, 2005 Sept. 30, 2006 (% change)
------------------------------------------------------------------------
Net sales and other 4,602.2 5,230.5* +628.3
operating revenue (+13.7)
Operating income 333.0 396.5* +63.4
(+19.1)
Income before income taxes 313.7 345.8* +32.1
(+10.3)
Equity in income of 47.2 57.6* +10.4
affiliates (+22.1)
Net income 244.3 271.3* +26.9
(+11.0)
EPS (Yen) 132.32 148.52 +16.20
(+12.2)
------------------------------------------------------------------------
*Record result for fiscal first half
(Honda's average rate for the current first half:
JPY 115 = U.S. dollar 1, JPY 146 = Euro 1)
(Note) As of July 1, 2006, one share of the Company's common stock
was split into two, and EPS was calculated based on the issued shares
after this 1:2 stock split.
Consolidated unit sales: All-time first half record unit sales were
realized in the automobile and power product business areas. (The total
includes fully finished products made by Honda and its subsidiaries as
well as unit sales of fully finished products and parts for local
production by affiliates accounted for under the equity method.)
- Motorcycles: 5.196 million units (+2.5%); the increase was due mainly to sales growth in India and Brazil. (Of the unit sales of Honda-brand motorcycle products that are manufactured and sold by overseas affiliates accounted for under the equity method, those with respect to which parts for manufacturing were not supplied from Honda or such subsidiaries are not included in unit sales, in conformity with U.S. generally accepted accounting principles as well as net sales and other operating revenue, which amounted to approximately 1.06 million units.)
- Automobiles: 1.78 million units (+6.3%); the increase was mainly due
to a rise in sales in North America and Asia.
- Power Products: 2.911 million units (+11.0%); the increase was mainly
due to sales growth in Japan, North America and Europe.
Consolidated revenue rose to JPY 5,230.5 billion (+13.7%), a sixth
consecutive all-time record, due to increased sales in all business
areas.
Consolidated operating income totaled JPY 396.5 billion (+19.1%), the third consecutive increase for the fiscal first half. The increased profit from higher revenue, and a positive effects of the depreciation of the Japanese Yen, offset the negative impacts of changes in the model mix, soaring raw materials costs exceeding continued cost reduction efforts, and an increase in SG&A expenses.
Income before income taxes increased to JPY 345.8 billion (+10.3%), for
the first increase in two years for the fiscal first half.
Equity in income of affiliates totaled JPY 57.6 billion (+22.1%), for a
seventh consecutive increase for the fiscal first half, due primarily to
increased income in automobile operations in China.
Consolidated net income was JPY 271.3 billion (+11.0%), for the sixth
consecutive increase.
II. Results for Fiscal 2nd Quarter of the fiscal year ending March 31,
2007
Consolidated revenue for the fiscal second quarter totaled JPY 2,630.8
billion (+12.5%), a sixth consecutive all-time record. Consolidated
operating income for the period was JPY 193.0 billion (+18.6%),
consolidated income before income taxes was JPY 158.8 billion (-6.2%)
due mainly to fluctuation in fair value of interest rate swap included
in non-operating income and expenses, and consolidated net income
totaled JPY 127.9 billion (-4.3%).
III. Forecast for Fiscal Year Ending March 31, 2007
Honda aims to achieve JPY 11 trillions of consolidated revenue for the
fiscal year ending March 31, 2007, a seventh consecutive all-time
record, based on the unit sales plans of 10.71 million motorcycles, 3.7
million automobiles and 6.255 million power products. (Of the unit sales
of Honda-brand motorcycle products that are manufactured and sold by
overseas affiliates accounted for under the equity method, those with
respect to which parts for manufacturing were not supplied from Honda or
such subsidiaries are not included in unit sales, in conformity with
U.S. generally accepted accounting principles as well as net sales and
other operating revenue, which amounted to approximately 3.02 million
units.)
Honda will carry out its business operations based on the goals described in the following chart with assumption of the average currency exchange rate of JPY 115 = U.S. dollar 1 (average rate for the first half of the fiscal year: JPY 115, second half of the fiscal year: JPY 115) and JPY 145 = Euro 1 (first half: JPY 146, second half: JPY 145 ).
Yen (billions)
------------------------------------------------------------------------
Year ended Forecast FY Difference Previous
March 31, March 31, (% change) forecast
2006 2007 (July 26)
------------------------------------------------------------------------
Net sales and other 9,907.9 11,000.0 +1,092.0 10,700.0
operating revenue (+11.0%)
Operating income 868.9 820.0 -48.9 (-5.6%) 750.0
[gain on Daiko-Henjo*
excluded] [730.8] [+89.1 (+12.2%)]
Income before
income taxes 814.6 745.0 -69.6 (-8.5%) 735.0
[gain on Daiko-Henjo*
excluded] [676.6] [+68.3 (+10.1%)]
Equity in income of
affiliates 99.6 101.0 +1.3 (+1.4%) 103.0
Net income 597.0 555.0 -42.0 (-7.0%) 550.0
[gain on Daiko-Henjo*
excluded] [514.2] [+40.7 (+7.9%)]
------------------------------------------------------------------------
*Gain on the return of the substitutional portion of the Employees'
Pension Funds to the Japanese government.
About Honda Motor Co., Ltd.
Honda Motor Co., Ltd. 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.
For further information, please visit the Honda Motor Co., Ltd. home
page at: world.honda.com <http://world.honda.com>
