Honda Announces Consolidated Financial Summary for the Fiscal First Quarter Ended June 30, 2005
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| Honda Announces Consolidated Financial Summary for the Fiscal First Quarter Ended June 30, 2005 |
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Tokyo, Japan, July. 27, 2005 - (JCN Newswire) - Honda Motor Co., Ltd. realized a 5th consecutive an all-time record for consolidated net sales and other operating revenue for the fiscal 1st quarter due to increased domestic and overseas sales. Operating income increased due to increased profit from higher revenue and cost reduction effects despite an increase in selling, general and administrative (SG&A) expenses and research and development (R&D) expenses. Income before income taxes decreased mainly due to a change in derivative instruments, as a result of a drop in long-term interest rates. Net income for the period decreased by 3.1%, although an increase in equity in income of affiliates was realized. Results for Fiscal First Quarter Ended June 30, 2005 (*record high for fiscal 1st quarter) (yen billions)
First Quarter ended June 30, Difference(% change)
2004 2005
Net sales and other
operating revenue 2,073.1 2,264.5 +191.4 (+9.2)
Operating income 159.9 170.3 +10.4 (+6.5)
Income before
income taxes 174.0 144.3 -29.7 (-17.1)
Equity in income
of affiliates 18.8 21.1 +2.3 (+12.3)
Net income 114.2 110.6 -3.5 (-3.1)
Basic net income per
common share (yen) 121.65 119.75 -1.90 (-1.6)
(Honda's average rates: JPY 108 = USD 1 JPY 136 = Euro 1)Highlights - Record unit sales were realized in the automobile and power product business areas. (Totals include fully finished products made by Honda and its subsidiaries as well as unit sales of parts for local production at affiliates accounted for under the equity method.) Motorcycle sales totaled 2.581 million units, which is roughly equivalent to last year's pace, mainly consisting of a decrease in sales in North America and an increase in sales in Asia. (This does not include the approximately 370 thousand motorcycles with local procurement rates of 100% which were produced and sold by affiliates in China and India, in conformity with U.S. generally accepted accounting principles.) In the automobile business, an increase in sales in each region resulted in a sales total of 840 thousand units (+8.8%). In the power product business, sales increased to 1.482 million units (+6.8%), primarily due to sales increases in North America and Asia. -Consolidated net sales increased to JPY 2,264.5 billion (+9.2%), mainly due to an increase in domestic and overseas sales. This represents an all-time record for the first quarter for the 5th consecutive year. -Operating income increased to JPY 170.3 billion (+6.5%) , reflecting increased profit from higher revenue and cost reduction effects despite an increase in SG&A expenses and R&D expenses. -Income before income taxes decreased to JPY 144.3 billion (-17.1%), primarily due to a change in derivative instruments, as a result of a drop in long-term interest rates. -Net income for the period decreased to JPY 110.6 billion (-3.1%), although an increase in equity in income of affiliates (+JPY 2.3 billion , +12.3%) was realized. Forecasts for Fiscal Year Ending March 31, 2006 A 6th consecutive all-time record is forecast for consolidated net sales and other operating revenue based on a unit sales plan of 10.095 million motorcycles, 3.415 million automobiles and 5.81 million power products. (Unit sales of motorcycles, with local procurement rates of 100% which are produced and sold by affiliates in China and India, are expected to increase by 2.45 million units to 3.45 million units, but are not included in the sales plan total in conformity with U.S. generally accepted accounting principles.) The consolidated forecast for the fiscal year ending March 31, 2006 is as follows, based on average exchange rates of JPY 106 = U.S. dollar 1; JPY 132 = Euro 1 (second half of fiscal year: JPY 105 = U.S. dollar 1; JPY 130 = Euro 1.)
(yen billions)
Forecast for
Year ended year ending Difference Oct. 27, 2004
March 31, 2005 March 31, 2006 (% change) forecast
Net sales and
other operating
revenue 8,650.1 9,430.0 +779.8 (+9.0) 9,300.0
Operating income 630.9 665.0 +34.0 (+5.4) 650.0
Income before
income taxes 656.8 620.0 -36.8 (-5.6) 615.0
Equity in income
of affiliates 96.0 91.0 -5.0 (-5.3) 77.0
Net income 486.1 470.0 -16.1 (-3.3) 450.0
(Honda's average rates: JPY 106 = U.S. dollar 1 JPY 132 = Euro 1)
Contact: corporate_pr@hm.honda.co.jp (Reserved for media inquiries) July. 27, 2005, 16:44 (JST) Source: Honda Motor Co., Ltd. Honda Motor Co., Ltd. (FTSE: HNDA.L) ?Company_Show.asp?compid=639 From the Japan Corporate News Network http://www.japancorp.net Topic: Earnings Sectors: Auto General, Earnings Copyright © 2005 JCN Newswire. All rights reserved. A division of Japan Corporate News Network KK. |