GOOD NEWS-Honda Reports Consolidated Financial Results for
the Fiscal Q4
TOKYO, April 27 Honda Motor Co., Ltd. today announced its
consolidated financial results for the fiscal fourth quarter and the fiscal
year ended March 31, 2001.
Fourth Quarter Results
Honda's consolidated net income for the fiscal fourth quarter ended
March 31, 2001 totaled 63.0 billion ($508 million), an increase of 0.4% from
the corresponding period in 2000. Net income per Common Share for the quarter,
both on a basic and fully diluted basis, amounted to 64.65 yen ($0.52),
compared to 64.37 yen for the corresponding period in 2000. Each of Honda's
American Depositary Shares represents two Common Shares.
Consolidated net sales and other operating revenue (herein referred to as
"revenue") for the fiscal fourth quarter amounted to 1,835.8 billion yen
($14,817 million), an increase of 13.5% from the corresponding period in 2000.
This increase in revenue was primarily due to increased unit sales in
motorcycles and automobiles, together with currency translation effects, which
had a positive impact on foreign currency-denominated revenue from Honda's
overseas subsidiaries, translated into yen.
Honda estimates that had the exchange rate of yen remained unchanged from
the same period in 2000, revenue for the quarter would have increased by
approximately 8.0%.
Consolidated operating income for the fiscal fourth quarter totaled
109.1 billion yen ($881 million), an increase of 20.1% compared to the
corresponding period in 2000.
This increase in operating income was primarily due to an increase in
revenue and Honda's ongoing cost reduction efforts, which offset increases in
selling, general and administrative expenses and research and development
expenses. Consolidated income before income taxes for the quarter totaled
108.0 billion yen ($872 million), an increase of 26.7% from the corresponding
period in 2000.
With respect to Honda's sales in the fiscal fourth quarter by business
category, motorcycle unit sales increased by 6.4% to 1,306,000 units, and
revenue increased 11.6%, to Y241.6 billion ($1,951 million). This increase in
unit sales was due primarily to higher sales in such Asian countries as
Indonesia and India.
Honda's unit sales of automobiles increased by 5.5% to 694,000 units, due
primarily to the introduction of the Stream, a new minivan and the remodeled
Civic in Japan, together with sales of the Acura MDX, a new sport utility
vehicle introduced in North America. Revenue increased 14.1%, to
1,469.1 billion yen ($11,858 million) during the quarter.
Unit sales of power products totaled 1,292,000 units, a decrease of 0.2%
compared to the corresponding period in 2000. Lower sales of Honda's
general-purpose engines and electric generators in North America were the
major factor in this decrease in unit sales. Revenue from other businesses,
including the power product business and financial services, increased by
10.1% to 124.9 billion yen ($1,009 million) due mainly to higher revenue from
its finance subsidiaries.
Fiscal Year Results
Honda's consolidated net income for the year ended March 31, 2001 totaled
232.2 billion yen ($1,874 million), a decrease of 11.5% from the previous
fiscal year. Net income per Common Share for the year, both on a basic and
fully diluted basis, amounted to 238.34 yen ($1.92), compared to 269.31 yen
for the previous fiscal year.
Unit sales of Honda's motorcycles and automobiles increased and
consolidated net sales and other operating revenue (herein referred to as
"revenue") for the year set a record high, amounting to 6,463.8 billion yen
($52,170 million), an increase of 6.0% over last year.
Revenue included the negative effect of currency translation, and Honda
estimates that had the exchange rate of the yen remained unchanged from the
previous year, revenue for the year would have increased by approximately
8.0%.
Consolidated operating income for the year totaled 406.9 billion yen
($3,285 million), a decrease of 4.5% compared to the previous fiscal year.
Despite an increase in revenue and Honda's ongoing cost reduction efforts, the
negative impact of the appreciation of the yen was the major factor for this
decrease in operating income.
Consolidated income before income taxes for the year totaled Y384.9
billion ($3,107 million), a decrease of 7.5% compared to the previous year.
With respect to Honda's sales for the fiscal year by business category,
motorcycle unit sales increased by 15.4% to 5,118,000 units, and revenue
increased 12.0% to 805.3 billion yen ($6,500 million). Unit sales increased in
such Asian countries as Indonesia and India as well as in North America during
the period, which offset decreased unit sales in Japan and Europe.
Honda's unit sales of automobiles increased by 4.3% to 2,580,000 units,
and revenue increased 5.4% to 5,231.3 billion yen ($42,222 million) from the
previous fiscal year. Strong sales of the Odyssey both in Japan and North
America and the introduction of such new models as the Stream in Japan and the
Acura MDX in North America were the primary contributors to these increases.
Unit sales of power products totaled 3,884,000 units, a decrease of 4.3%
compared to the previous fiscal year. Lower sales in North America and Europe
undermined an increase in unit sales in Asia outside of Japan. Honda's other
businesses, including power products and financial services, showed a 2.0%
increase in revenue, amounting to 427.2 billion yen ($3,448 million), due
mainly to higher revenue from its finance subsidiaries.
Forecasts for fiscal year ending March 31, 2002
The global business environment for the foreseeable future looks beset
with difficulties owing to the economic slowdown in the United States and
Asia, uncertainty in Europe and sluggish recovery in Japan. In these
circumstances, Honda expects competition in each of its markets to remain
challenging. In regard to the forecasts of the financial results for the
fiscal year ending March 31, 2002, Honda projects consolidated results as to
be below:
In billions Changes from
of yen FY 2001
First half ending September 30, 2001
Net sales and other operating revenue 3,520 yen +15.3%
Income before income taxes 235 +22.4%
Net income 150 +23.0%
Fiscal year ending March 31, 2002
Net sales and other operating revenue 7,150 yen +10.6%
Income before income taxes 505 +31.2%
Net income 315 +35.6%
These forecasts are based on the assumption that the exchange rates for
the yen to the U.S. dollar and the euro for the current fiscal year will
average 116 yen and 106 yen, respectively.
