Honda Reports Fiscal Q2 Results
13 November 1997
Honda Motor Co., Ltd. Reports Unaudited Consolidated Financial Results for the Fiscal Second Quarter and the First Half Ended September 30, 1997
TOKYO, Nov. 13 -- Honda Motor Co., Ltd. today
announced its unaudited consolidated financial results for the fiscal second
quarter and the first half ended September 30, 1997.
Second Quarter Results ended September 30, 1997
Honda's consolidated net income for the fiscal second quarter ended
September 30, 1997, was Y64.2 billion ($531 million), increasing 30.6% from
the corresponding quarter last year. Net income per Common Share for the
quarter amounted to Y65.93 ($0.54) compared to Y50.49 for the corresponding
period a year ago. Net income per American Share, each representing two
Common Shares, totaled Y131.86 ($1.09) compared to Y100.98 for the
corresponding period of the previous year.
Consolidated net sales and other operating revenue for the quarter under
review amounted to Y1,375.9 billion ($11,362 million), increasing 10.3% from
the corresponding quarter a year ago. Strong gains in automobile sales in
North America and Europe contributed to the increase.
Consolidated operating income for the quarter totaled Y119.3 billion
($986 million), increasing 29.8% from the corresponding quarter of the
previous fiscal year. The increase in operating income was due mainly to
higher revenue and the Company's continued cost cutting efforts, together with
positive effects of the depreciation of the yen.
Honda's consolidated income before income taxes for the quarter increased
32.6%, to Y114.5 billion ($946 million).
Reviewing the second quarter by business segment, Honda's motorcycle unit
sales totaled 1,466,000 units and revenue amounted to Y174.1 billion
($1,438 million), representing increases of 5.0% and 3.9%, respectively, from
the corresponding period last year. Favorable sales in Latin America and
Europe were the primary contributors to this increase.
Unit sales of automobiles totaled 566,000 units and revenue amounted to
Y1,084.0 billion ($8,952 million) for the quarter, increasing 6.6% and
9.6%, respectively. Increased sales in North America and Europe were the
major contributors to this increase.
Unit sales of power products decreased by 1.0%, totaling 609,000 units.
Revenue from other businesses, including the power product business, increased
29.6%, amounting to Y117.7 billion ($972 million). Favorable sales of power
products in North America and an increase in Honda's financial services
revenue were the primary contributors to this increase.
First Half-Year Results
Consolidated net income for the first six months ended September 30, 1997,
totaled Y126.4 billion ($1,045 million), a 33.3% increase from the fiscal
first half last year. Net income per Common Share for the fiscal first half
totaled Y129.81 ($1.07) compared to Y97.40 for the corresponding period a year
ago. Net income per American Share, each representing two Common Shares,
amounted to Y259.62 ($2.14) compared to Y194.80 for the fiscal first half last
year.
Consolidated net sales and other operating revenue for the six months
totaled Y2,794.6 billion ($23,077 million), an increase of 12.8% from the
fiscal first half last year. This increase in revenue resulted primarily from
higher sales of automobiles in North America and Europe.
Consolidated operating income for the fiscal first half increased
42.9%, amounting to Y229.4 billion ($1,895 million), due primarily to
increased revenues. Honda's continued cost reduction efforts and the positive
impact of the depreciation of the yen also contributed to this increase.
The yen averaged at Y118.83 = U.S. $1 in the Tokyo foreign exchange market
during the first half-year period, 8.8% lower than during the corresponding
period last year.
Consolidated income before income taxes and net income for the fiscal
first half amounted to Y222.5 billion ($1,838 million) and Y126.4 billion
($1,045 million), up 37.0% and 33.3%, respectively, from the corresponding
period last year.
The Company's consolidated income statement data for the first half-year
ended September 30, 1996, included a pre-tax gain of %10.4 billion and an
after-tax gain of Y5.0 billion on the non-monetary exchange of common shares
of The Bank of Tokyo, Ltd. ("BOT") held by Honda for common shares of The Bank
of Tokyo-Mitsubishi, Ltd.
Reviewing the six-month period by business segment, the motorcycle unit
sales rose 2.3% from a year ago, totaling 2,776,000 units and revenue
increased 10.2%, amounting to Y374.8 billion ($3,095 million). Favorable
sales of motorcycles in Europe and Latin America were the primary contributors
to these increases, offsetting lower sales in Asia.
Honda's overall automobile unit sales totaled 1,139,000 units, 8.9% higher
than the corresponding period last year. The automobile business revenue for
the fiscal first half increased 11.7%, totaling Y2,195.5 billion
($18,130 million). Favorable sales of automobiles in North America and
Europe, in particular increased sales of the CR-V sports utility vehicle and
Civic 4-door model in the U.S., mainly contributed to these increases.
Unit sales of power products totaled 1,193,000 units, an increase of
8.1% over the corresponding period last year. Honda's other businesses
including power products and financial services registered a 30.2% increase in
revenue, amounting to Y224.3 billion ($1,852 million). Revenues generated
from the Company's power product and financial services showed steady
increases.
SOURCE Honda Motor Co., Ltd.