Honda Motor Co., Ltd. Reports Unaudited Consolidated Financial Results

TOKYO, July 29-- Honda Motor Co., Ltd. today announced its unaudited consolidated financial results for the fiscal first quarter ended June 30, 2002.

Honda's consolidated net income for the fiscal first quarter ended June 30, 2002 totaled JPY 107.5 billion (USD 900 million), an increase of 20.4% from the corresponding period in 2001. Basic net income per Common Share for the quarter amounted to JPY 110.42 (USD 0.92), compared to JPY 91.72 for the corresponding period in 2001. Two of Honda's American Depositary Shares represent one Common Share.

Consolidated net sales and other operating revenue (herein referred to as "revenue") for the fiscal first quarter amounted to JPY 1,936.8 billion (USD 16,208 million), an increase of 10.0% from the corresponding period in 2001. In addition to higher sales, 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.

Honda estimates that had the exchange rate of yen remained unchanged from the same period in 2001, revenue for the quarter would have increased by approximately 6.5%.

Consolidated operating income for the fiscal first quarter totaled JPY 170.8 billion (USD 1,429 million), an increase of 12.8% compared to the corresponding period in 2001. This increase in operating income was due primarily to an increase in revenue contributed by higher unit sales of motorcycles, automobiles and power products, the positive impact of the depreciation of the yen 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 JPY 163.7 billion (USD 1,370 million), an increase of 20.7% from the corresponding period in 2001.

With respect to Honda's sales in the fiscal first quarter by business category, motorcycle unit sales increased by 33.4% to 1,827,000 units, and revenue increased 12.1%, to JPY 251.8 billion (USD 2,108 million). This increase in unit sales was due primarily to higher sales in Asia outside of Japan and North America.

Honda's unit sales of automobiles increased by 8.8% to 694,000 units, due primarily to strong sales in North America contributed by the newly introduced Pilot SUV, CR-V and Acura RSX. Revenue increased 9.1%, to JPY 1,551.4 billion (USD 12,983 million) during the quarter.

Unit sales of power products totaled 1,121,000 units, an increase of 19.1% compared to the corresponding period in 2001. Higher sales of general-purpose engines in North America and Japan were the major factor for this increase in unit sales. Revenue from other businesses, including the power product business and financial services, increased by 17.2% to JPY 133.5 billion (USD 1,118 million) due mainly to higher sales in power products business and higher revenue from Honda's finance subsidiaries.