Honda Motor Co., Ltd. Reports Unaudited Consolidated Financials

TOKYO, Feb. 5 Honda Motor Co., Ltd. today announced its unaudited consolidated financial results for the fiscal third quarter and the nine months ended December 31, 2001.

Third Quarter Results

Honda's consolidated net income for the fiscal third quarter ended December 31, 2001 totaled 82.2 billion yen ($623 million), an increase of 73.8% from the same period in 2000. Basic net income per Common Share for the quarter amounted to 84.42 yen ($0.64), compared to 48.58 yen for the same period in 2000. Two of Honda's American Shares represent one Common Share.

Unit sales in all Honda's business categories increased for the fiscal third quarter and consolidated net sales and other operating revenue (herein referred to as ``revenue'') amounted to 1,756.4 billion yen ($13,311 million), an increase of 11.4% from the same period in 2000. In addition to the higher sales, a favorable model mix and currency translation effects, which had a positive impact on foreign currency-denominated revenue from Honda's overseas subsidiaries, translated into yen, contributed to this increase.

Consolidated operating income for the fiscal third quarter totaled 154.7 billion yen ($1,173 million), an increase of 60.7% compared to the same period in 2000. This increase in operating income was due mainly to higher automobile sales in Japan and continuing strong demand for major models in North America. Honda's ongoing cost cutting strategies and the depreciation of the yen also contributed to this increase.

Consolidated income before income taxes for the quarter totaled 120.4 billion yen ($913 million), an increase of 41.9% from the same period in 2000.

With respect to Honda's sales in the fiscal third quarter by business category, motorcycle unit sales increased 21.3% to 1,537,000 units, and revenue increased 18.3%, to 203.2 billion yen ($1,540 million). These increases were due primarily to higher sales in Asian countries such as India, Indonesia and Thailand. In addition, increased unit sales in Brazil, and higher sales of All Terrain Vehicles in the United States also contributed to these increases.

Honda's unit sales of automobiles increased by 1.2% to 652,000 units, due primarily to strong sales of the Fit small car and the Step Wagon minivan in Japan. Revenue increased 9.5%, to 1,428.4 billion yen ($10,825 million) during the quarter due to higher unit sales in Japan and a favorable model mix in North America led by increased sales of the Accord and the Odyssey.

Unit sales of power products totaled 787,000 units, an increase of 2.3% compared to the same period last year. Favorable sales of Honda's general-purpose engines and lawnmowers in the United States were the major factor in this increase. Revenue from other businesses, including the power product business and financial services, increased by 25.4% to 124.7 billion yen ($946 million) due mainly to higher revenue from financial services led by favorable automobile sales in North America.

Nine-Month Results

Honda's consolidated net income for the fiscal nine months ended December 31, 2001 totaled 255.9 billion yen ($1,940 million), an increase of 51.3% from the previous year. Basic net income per Common Share for the fiscal nine months amounted to 262.72 yen ($1.99), compared to 173.68 yen for the corresponding period a year ago.

Unit sales of Honda's motorcycles and automobiles increased and revenue for the fiscal nine months amounted to 5,261.4 billion yen ($39,874 million), an increase of 13.7% from last year.

Consolidated operating income for the fiscal nine months totaled 470.0 billion yen ($3,562 million), an increase of 57.8% compared to the corresponding period last year. Automobile unit sales both in Japan and North America increased, reflecting customers' strong demand for Honda's automobiles. In addition, Honda's continuing cost cutting strategies together with a weaker yen were the contributing factors in this increase in operating income. Consolidated income before income taxes for the fiscal nine months totaled 390.4 billion yen ($2,959 million), an increase of 41.0% compared to the previous year.

With respect to Honda's sales for the nine-month period by business category, motorcycle unit sales increased by 13.9% to 4,343,000 units, and revenue increased 14.7% to 646.6 billion yen ($4,901 million). Strong gains in both North America and Asian countries outside Japan were more than enough to offset decreased unit sales in Europe.

Honda's unit sales of automobiles increased by 2.9% to 1,940,000 units, and revenue increased 13.4% to 4,267.9 billion yen ($32,345 million) for the nine-month period. Robust sales of the Fit and the Stream in Japan and increased unit sales of the Accord, the Civic and light truck models such as the Odyssey and the Acura MDX in North America were the primary contributors to these increases.

Unit sales of power products totaled 2,497,000 units, a decrease of 3.7% compared to the corresponding period of the previous year. Unit sales of general-purpose engines showed an increase in both Japan and North America, however, weaker sales centered in Europe and other regions were attributable to this decrease. Other businesses, including power products and financial services, showed a 14.8% increase in revenue, amounting to 346.8 billion yen ($2,628 million).