Honda Worldwide Consolidated Financial Summary for the Fiscal
3rd Quarter and Nine Months Ended December 31, 2008
TOKYO, Japan, January 30, 2009–Honda Motor Co., Ltd.
announced its consolidated financial results for the fiscal third quarter
and the fiscal nine months ended December 31, 2008.
♦ Consolidated Financial Summary:
Results for Fiscal 3rd Quarter (3 month period from October 1, 2008
through December 31, 2008)
Consolidated net sales and other operating revenue for the fiscal third
quarter ended December 31, 2008 amounted to JPY 2,533.2 billion, a decrease
of 16.8% compared to the same period a year ago, due to factors including
the negative impact of currency translation and declined sales of
automobile business.
Operating income amounted to JPY 102.4 billion, a decrease of 62.9%
compared to the same period a year ago, due to the negative impact of
currency effects, increased raw material costs, increased fixed costs per
unit as a result of reduced production, and increased selling, general and
administrative (SG&A) expenses.
Income before income taxes amounted to JPY 86.7 billion, a decrease of
66.7% compared to the same period a year ago, and net income amounted to
JPY 20.2 billion, a decrease of 89.9% compared to the same period a year
ago.
| Yen (billions) |
3rd
quarter ended Dec. 31, 2007 |
3rd quarter ended Dec. 31,
2008 |
Difference
(% change) |
Status of the current fiscal 3rd quarter |
| Net sales and other operating
revenue |
3,044.8 |
2,533.2 |
-511.5
(-16.8) |
Decreased for the
first time in 9 years |
| Operating income |
276.2 |
102.4 |
-173.7
(-62.9) |
Decreased for the
first time in 4 years |
| Income before income taxes |
260.7 |
86.7 |
-173.9
(-66.7) |
Decreased for the
first time in 3 years |
| Equity in income of
affiliates |
31.3 |
30.7 |
-0.5 (-1.6) |
Decreased for the
first time in 2 years |
| Net income |
200.0 |
20.2 |
-179.7
(-89.9) |
Decreased for the
first time in 3 years |
| < Exchange rate > |
| Honda’s average rates for this fiscal third
quarter: |
JPY 96=USD1 / JPY126=Euro1 |
| Honda’s average rates for the previous fiscal third
quarter: |
JPY113=USD1 / JPY164=Euro1 |
Results for Fiscal Nine Months (9 month period from April 1, 2008
through December 31, 2008)
Consolidated net sales and other operating revenue for the fiscal nine
months amounted to JPY 8,227.3 billion, a decrease of 8.0% compared to the
same period a year ago, due to factors including the negative impact of
currency translation.
Operating income amounted to JPY 472.6 billion, a decrease of 39.7%
compared to the same period a year ago, due to the negative impact of
currency effects, increased raw material costs, increased SG&A expenses,
and increased depreciation costs, despite continuing cost reduction efforts
and higher transaction price, etc.
Income before income taxes amounted to JPY 471.3 billion, a decrease of
37.1% compared to the same period a year ago, and net income amounted to
JPY 323.1 billion, a decrease of 43.8% compared to the same period a year
ago.
| Yen (billions) |
Previous fiscal
9 months |
Current fiscal
9 months |
Difference
(% change) |
Status of the current fiscal 3rd quarter |
| Net sales and other operating
revenue |
8,947.2 |
8,227.3 |
-719.9 (-8.0) |
Decreased for the
first time in 9 years |
| Operating income |
784.2 |
472.6 |
-311.6
(-39.7) |
Decreased for the
first time in 5 years |
| Income before income taxes
|
748.9 |
471.3 |
-277.6
(-37.1) |
Decreased for the
first time in 3 years |
| Equity in income of affiliates
|
94.5 |
96.2 |
+1.7 (+1.8) |
Increased 9th
consecutive year |
| Net income |
574.6 |
323.1 |
-251.4
(-43.8) |
Decreased for the
first time in 3 years |
| < Exchange rate > |
| Honda’s average rates for the current
fiscal 9 months: |
JPY103=USD1 / JPY149=Euro1 |
| Honda’s average rates for the previous fiscal 9
months: |
JPY117=USD1 / JPY163=Euro1 |
At the board of directors meeting held today, Honda resolved to pay 11 yen
per share for the fiscal third quarter dividend with the record date of
December 31, 2008. As of today, the year-end dividend for this fiscal year
has not been determined yet. Honda would like to make a proposal after
considering the results for the current fiscal year and the forecasts for
the following fiscal year.
| ♦ |
Consolidated Unit Sales
Consolidated unit sales are the total of sales of finished products of
Honda and its consolidated subsidiaries, and sales of parts for use in
local production at Honda's affiliates accounted for under the equity
method. |
| |
3rd Quarter ended
Dec.31, 2008 |
Difference
(% change) |
|
Major factors of increase/decrease |
| Motorcycles |
| 2.504 million units |
(+5.8) |
|
Increased sales in
Asia |
| Automobiles |
| 0.94 million units |
(-5.1) |
|
Decreased sales in
North America despite an increase in Asia |
| Power Products |
| 1.115 million units |
(-5.3) |
|
Decreased sales in
North America and Europe |
| |
Current fiscal
9 months |
Difference
(% change) |
|
Major
factors of increase/decrease |
| Motorcycles |
| 8.112 million units |
(+5.8) |
|
Increased sales of
parts for use in local production at Honda's overseas affiliates in Asia
accounted for under the equity method |
| Automobiles |
| 2.837 million units |
(-5.1) |
|
Decreased sales in
North America despite an increase in Asia and the Other region which
includes Brazil |
| Power Products |
| 3.656 million units |
(-7.8) |
|
Decreased sales in
North America and Europe |
| |
Unit sales of approximately 1.11
million units for the current fiscal 3rd quarter and 3.59 million units for
the current fiscal nine months of Honda-brand motorcycle products are not
included in the totals listed above, in conformity with U.S. generally
accepted accounting principles, because they are manufactured and sold by
overseas affiliates accounted for under the equity method, but do not use
any parts supplied by Honda and its consolidated subsidiaries.
|
| ♦ |
Forecast for the Fiscal Year Ending March 31,
2009
Honda will conduct its business operations based on the target for a
financial results forecast for the fiscal year ending March 31, 2009 as
described below, with assumption of the average currency exchange rate of
JPY100=U.S. dollar 1 (4th quarter: JPY85) and JPY140=Euro 1 (4th quarter:
JPY110) for the entire year. |
| Yen (billions) |
Fiscal year ended
March 31, 2008 |
Forecast for
Fiscal year ending
March 31, 2009 |
Difference
(% change) |
Forecast Status |
| Net sales and other operating
revenue |
12,002.8 |
10,100.0 |
-1,902.8
(-15.9) |
Decrease for the
first time in 9 years |
| Operating income |
953.1 |
140.0 |
-813.1
(-85.3) |
Decrease for the
first time in 2 years |
| Income before income taxes |
895.8 |
135.0 |
-760.8
(-84.9) |
Decrease for the
first time in 2 years |
| Equity in income of
affiliates |
118.9 |
105.0 |
-13.9 (-11.7) |
Decrease for the
first time in 10 years |
| Net income |
600.0 |
80.0 |
- 520.0
(-86.7) |
Decrease for the
first time in 2 years |
| < Exchange rate > |
| Honda’s average rates for the fiscal year
ended March 31, 2008: |
JPY114=USD1 / JPY162=Euro1 |
Consolidated Unit Sales Forecast
| |
Fiscal year ending
March 31, 2009 |
Difference
(% change) |
|
| Motorcycles |
| 10.175 million units |
(+9.2) |
|
| Automobiles |
| 3.525 million units |
(-10.2) |
|
| Power Products |
| 5.26 million units |
(-13.2) |
|
| |
Unit sales of approximately 4.74
million units of Honda-brand motorcycle products are not included in this
total, in conformity with U.S. generally accepted accounting principles,
because they are manufactured and sold by overseas affiliates accounted for
under the equity method, but do not use any parts supplied by Honda and its
consolidated subsidiaries.
|
in comparison to the previous forecast made in December 2008>
| Yen (billions) |
Previous forecast
(Dec. 17, 2008) |
Latest forecast
(Jan. 30, 2009) |
Difference
(% change) |
| Net sales and other operating
revenue |
10,400.0 |
10,100.0 |
-300.0 (-2.9) |
| Operating income |
180.0 |
140.0 |
-40.0 (-22.2) |
| Income before income taxes
|
190.0 |
135.0 |
-55.0 (-28.9) |
| Equity in income of affiliates
|
125.0 |
105.0 |
-20.0(-16.0) |
| Net income |
185.0 |
80.0 |
- 105.0
(-56.8) |
| < Exchange rate > |
| Honda’s average rates used for the latest
forecast: |
JPY100=USD1 / JPY140=Euro1 |
| Honda’s average rates used for the previous forecast:
|
JPY101=USD1 / JPY136=Euro1 |
