Honda Reports Best Ever Results for the Fiscal Third Quarter and the Nine Monthes Ended December 31, 2003;
JapanCorp: <http://www.japancorp.net/?page_num=1> Honda Motor Co., Ltd. Reports Consolidated Financial Results for the Fiscal Third Quarter and the Nine Monthes Ended December 31, 2003; Best Ever Results Tokyo, Japan, Jan. 30, 2004 - (JCN Newswire) - Honda Motor Co., Ltd. today announced its consolidated financial results for the fiscal third quarter and the nine months ended December 31, 2003. Depreciation of the dollar and a decline in domestic automobile sales were offset by strong overseas sales of automobiles, motorcycles and power products in the North American market as well as other regions. Honda's Net sales and other operating revenue as well as Operating income set new records for the 3rd QTR. In addition, income before income taxes and Net income were all-time records for any QTR. Honda's consolidated net income for the fiscal third quarter ended December 31, 2003 totaled JPY 151.0 billion (USD 1,410 million), an increase of 31.2% from the corresponding period in 2002. Basic net income per Common share for the quarter amounted to JPY 158.66 (USD 1.48), compared with JPY 118.63 for the same period in 2002. Two of Honda's American depositary shares represent one Common share. Unit sales in all of Honda's business categories, namely motorcycles, automobiles and power products, increased during the fiscal third quarter and consolidated net sales and other operating revenue (herein referred to as "revenue") for the quarter amounted to JPY 1,992.2 billion (USD 18,597 million), remaining unchanged from the corresponding period in 2002. Revenue included currency translation effects, which had a negative 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 2002, revenue for the quarter would have increased by approximately 6.3%. Consolidated operating income for the fiscal third quarter totaled JPY 161.1 billion (USD 1,504 million), an increase of 1.4% compared with the corresponding period in 2002. This increase in operating income was primarily due to increased profit coming from higher revenue and Honda's ongoing cost reduction, offsetting negative impacts, such as appreciation of the yen and increase in research and development (R&D) expenses. Consolidated income before income taxes for the quarter totaled JPY 203.5 billion (USD 1,900 million), an increase of 28.3% from the corresponding period in 2002. Results for the Fiscal 3rd QTR (*Best ever 3rd QTR result **Best ever for any QTR) Results(JPY billion) Same period 2002 % Change Net sales and other operating revenue 1,992.2* 1,989.2 + 0.2 Operating income 161.1* 158.9 + 1.4 Income before taxes 203.5** 158.7 + 28.3 Net income 151.0** 115.1 + 31.2 Basic net income per common share JPY158.66** JPY118.63 +33.7 (Exchange rate: JPY 109 = U.S. dollar 1 JPY 130 = Euro 1) --Unit sales for motorcycles, automobiles and power products all set all-time records Motorcycles: 2.367 million (+10.3%) This was led by growth in Asia and North America. Automobiles: 747 thousand (+6.4%) Sales were down by 25 thousand units domestically, however sales were up by 19 thousand units in North America due to strong sales of the Element, new Acura TL, Acura TSX among others as well as a 5 thousand unit increase in Europe led by Jazz and CR-V sales. In Asia, mainly China, Malaysia and Taiwan contributed to an increase of 32 thousand units. Power Products: 1.064 million (+23.4%) This was mostly led by brisk sales in North America. --Currency translation effects had a negative impact on Net sales and other operating revenue, however, sales increases in all business areas resulted in a (+0.2%) gain to JPY1,992.2 billion. (If the exchange rate from the same period during 2002 was applied, Honda estimates that an increase in revenue of approximately 6.3% would have been realized.) --Operating income was influenced by currency effects, but despite stiff competition, an increase in profits coming from higher revenue and cost cutting measures resulted in a (1.4%) gain to JPY161.1 billion. --Expansion of Asian joint venture operations and profit increases led to a great increase in Equity in income of affiliates added after tax deductions to JPY25 billion (+62.5%) resulting in an increase in net income to JPY151.0 billion (+31.2%). Forecasts for FY2004 All-time records are forecast for Net sales and other operating revenue, Income before income taxes and Net income. These forecasts are based on the assumption that the exchange rates for the U.S. dollar and euro will average JPY112 and JPY132 respectively compared to the previous forecast of JPY114 and JPY130 on October 28, 2003. Current Forecast Same period 2002 Ref: Oct. 28, 2003 (JPY billion) (% change) Forecast Net sales and other operating revenue 8,100.0 +1.6% 8,220.0 Operating income 623.0 -9.6% 623.0 Income before taxes 648.0 +6.3% 648.0 Net income 473.0 +10.9% 470.0 About Honda Motor Co., Ltd. Honda Motor Co., Ltd. was established in 1948 and is one of today's leading manufacturers of automobiles and the largest manufacturer of motorcycles in the world. The company and its subsidiaries develop, manufacture and distribute a wide variety of products, ranging from small general-purpose engines to specialty sports cars and also provides financial services. Honda's manufacturing operations for automobiles, motorcycles, engines and power products are principally conducted in twenty five factories, six of which are located in Japan, five in the United States, two each in Thailand and Brazil and one each in Canada, the United Kingdom, France, Italy, Spain, India, Pakistan, the Philippines, Vietnam and Mexico.For further information, please visit the Honda Motor Co., Ltd. home page at: www.honda.co.jp <http://www.honda.co.jp>