Honda Motor Co., Ltd. Reports Unaudited Consolidated Financial Results For the Fiscal Third Quarter and the Nine Months Ended December 31, 2002
TOKYO, Jan. 31 -- Honda Motor Co., Ltd. today announced its
unaudited consolidated financial results for the fiscal third quarter and the
nine months ended December 31, 2002.
Third Quarter Results
Honda's consolidated net income for the fiscal third quarter ended
December 31, 2002 totaled JPY 115.1 billion (USD 961 million), an increase of
40.0% from the same period in 2001. Basic net income per Common Share for the
quarter amounted to JPY 118.63 (USD 0.99), compared to JPY 84.42 for the same
period in 2001. Two of Honda's American Depositary Shares represent one Common
Share.
Unit sales in all Honda's business categories, namely motorcycles,
automobiles and power products, increased for the fiscal third quarter and
consolidated net sales and other operating revenue (herein referred to as
"revenue") amounted to JPY 1,989.2 billion (USD 16,591 million), an increase
of 13.3% over the corresponding period in 2001. Revenue included 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 the yen remained unchanged from
the same period in 2001, revenue for the quarter would have increased by
approximately 13.0%.
Consolidated operating income for the fiscal third quarter totaled JPY
158.9 billion (USD 1,326 million), an increase of 2.7% compared to the same
period in 2001. This increase in operating income was due mainly to higher
revenue from every product category, Honda's ongoing cost cutting strategies
together with the depreciation of the yen, which offset the negative impact
from increases in selling, general and administrative (SG&A) expenses as well
as research and development (R&D) expenses.
Consolidated income before income taxes for the quarter totaled JPY 158.7
billion (USD 1,324 million), an increase of 31.7% from the same period in
2001.
With respect to Honda's sales in the fiscal third quarter by business
category, motorcycle unit sales increased 39.6% to 2,145,000 units, and
revenue increased 6.9%, to JPY 217.2 billion (USD 1,812 million). These
increases were due primarily to higher sales in Asian countries such as
Thailand, China, Indonesia and India.
Honda's unit sales of automobiles increased by 7.7% to 702,000 units, due
primarily to strong sales of such light truck models as the Pilot, CR-V and
Odyssey in North America. Revenue increased 14.6%, to JPY 1,637.4 billion
(USD 13,657 million) during the quarter.
Unit sales of power products totaled 862,000 units, an increase of 9.5%
compared to the corresponding period in 2001. Favorable sales of Honda's
general-purpose engines in Europe and North America were the major factor in
this increase. Revenue from other businesses, including the power product
business and financial services, increased by 7.9% to JPY 134.5 billion (USD
1,122 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, 2002 totaled JPY 309.9 billion (USD 2,585 million), an increase of 21.1%
from the corresponding period of last year. Basic net income per Common Share
for the fiscal nine months amounted to JPY 318.59 (USD 2.66), compared to JPY
262.72 for the corresponding period a year ago.
Unit sales of Honda's motorcycles, automobiles and power products
increased and revenue for the fiscal nine months amounted to JPY 5,842.8
billion (USD 48,731 million), an increase of 11.1% from last year.
Revenue included positive 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
9.9%.
Consolidated operating income for the fiscal nine months totaled JPY 482.8
billion (USD 4,027 million), an increase of 2.7% compared to the corresponding
period last year. Higher revenue from every product category, a weaker yen
and Honda's continuing cost cutting strategies were the major contributing
factors in this increase in operating income.
Consolidated income before income taxes for the fiscal nine months totaled
JPY 432.4 billion (USD 3,606 million), an increase of 10.7% compared to the
previous year.
With respect to Honda's sales for the nine-month period by business
category, motorcycle unit sales increased by 38.4% to 6,012,000 units, and
revenue increased 10.6% to JPY 715.0 billion (USD 5,964 million). Strong gains
primarily in Asian countries outside Japan were more than enough to offset
decreased revenue from Japan.
Honda's unit sales of automobiles increased by 8.7% to 2,108,000 units,
and revenue increased 10.8% to JPY 4,728.9 billion (USD 39,441 million) for
the nine-month period. Robust sales of light truck models such as the Pilot,
CR-V and Odyssey in North America were the primary contributors to these
increases.
Unit sales of power products totaled 2,868,000 units, an increase of 14.9%
compared to the corresponding period of the previous year. Unit sales of
general-purpose engines increased in North America, Europe and Japan. Revenue
from other businesses, including power products and financial services, showed
a 15.0% increase, amounting to JPY 398.8 billion (USD 3,326 million).
Forecasts for the fiscal year ending March 31, 2003
FY2003 Forecasts for consolidated results
In billions of yen Changes from FY 2002
Net sales and other operating revenue 8,000 +8.7%
Income before income taxes 610 +10.6%
Net income 430 +18.6%
FY2003 Forecasts for unconsolidated results
In billions of yen Changes from FY 2002
Net sales 3,300 +2.8%
Ordinary profit 240 +9.6%
Net income 170 +26.0%
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 JPY 123 and JPY 115, respectively.
This announcement contains forward-looking statements within the meaning
of Section 21E of the U.S. Securities Exchange Act of 1934. Honda's actual
results could materially differ from those contained in these forward-looking
statements as a result of numerous factors outside of Honda's control. Such
factors include general economic conditions in Honda's principal markets, and
foreign exchange rates between the Japanese yen and other major currencies, as
well as other factors detailed from time to time in Honda's reports filed with
the U.S. Securities and Exchange Commission.