Honda Motor Co., Ltd. Reports Unaudited Consolidated Financial Results
18 February 1998
Honda Motor Co., Ltd. Reports Unaudited Consolidated Financial Results; For The Fiscal Third Quarter And Nine Months Ended Dec. 31, 1997
TOKYO, Feb. 18 -- Honda Motor Co., Ltd. today
announced its unaudited consolidated financial results for the fiscal third
quarter and nine months ended Dec. 31, 1997.
Third Quarter Results
Honda's consolidated net income for the fiscal third quarter ended
Dec. 31, 1997, was Y65.2 billion ($501 million), increasing 5.3% from the
corresponding three months last year. Net income per Common Share for the
quarter amounted to Y66.92 ($0.51), and Y66.91 ($0.51) on a fully diluted
basis, compared to Y63.55 (Y63.54 on a fully diluted basis) for the
corresponding period a year ago. Each of Honda's American Shares represents
two Common Shares.
Consolidated net sales and other operating revenue for the quarter under
review amounted to Y1,554.8 billion ($11,951 million), an increase of 16.6%
from the corresponding quarter a year ago. Strong gains in automobile sales,
in particular in North America and Europe, were the primary contributors to
this growth.
Consolidated operating income for the quarter totaled Y127.0 billion
($977 million), improving 26.3% from the third quarter of the previous fiscal
year. This increase in operating income was due primarily to higher revenue
and the Company's continued cost cutting efforts, together with positive
effects of the depreciation of the yen.
Consolidated income before income taxes for the quarter increased 26.1%,
to Y122.0 billion ($938 million).
Reviewing the third quarter by business segment, Honda's motorcycle unit
sales increased 12.3%, to 1,355,000 units due primarily to increased sales in
overseas countries. In particular, motorcycle sales increased in India and
Brazil, offsetting lower sales in Thailand. Revenue from Honda's motorcycle
business increased 16.1%, to Y181.8 billion ($1,398 million). This increase
in revenue was primarily due to higher sales, improved product mix as well as
the depreciation of the yen.
Unit sales of automobiles totaled 601,000 units and revenue amounted to
Y1,255.3 billion ($9,649 million) during the three-month period, increasing
7.7% and 15.5%, respectively. Automobile sales grew in North America and
Europe. Favorable sales of the CR-V were the major contributing factors to
these increases.
Unit sales of power products expanded 25.6% from the corresponding period
last year, totaling 658,000 units. Revenue from other businesses, including
the power product business, increasing by 30.0%, amounting to Y117.5 billion
($903 million). Honda's overall sales of power products during the quarter
were favorable. In particular, sales of general-purpose engines and lawn
mowers in North America contributed to this advance. In addition, an increase
in Honda's financial services revenue strongly supported this increase.
Nine-Month Results
Consolidated net income for the fiscal nine months ended Dec. 31, 1997,
was Y191.6 billion ($1,473 million), increasing 22.2% from the corresponding
period last year. Net income per Common Share for the fiscal nine months
amounted to Y196.75 ($1.51), and Y196.72 ($1.51) on a fully diluted basis,
compared to Y160.96 (Y160.94 on a fully diluted basis) for the corresponding
period a year ago. Each of Honda's American Shares represents two Common
Shares.
Consolidated net sales and other operating revenue for the fiscal nine
months under review totaled Y4,349.4 billion ($33,432 million), an increase of
14.1% from the corresponding period last year. This increase in revenue
resulted primarily from higher unit sales of automobiles in North America and
Europe. In addition, the depreciation of the yen positively affected revenue.
The yen averaged Y120.99 to US$1 on the Tokyo foreign exchange market during
the fiscal nine-month period under review, 9.2% lower than during the
corresponding period last year.
Consolidated operating income for the nine months increased 36.5%,
amounting to Y356.5 billion ($2,740 million). In addition to higher revenue,
Honda's ongoing cost reduction efforts and the positive impact of the
depreciation of the yen were also major contributing factors to this increase.
Consolidated income before income taxes and net income for the fiscal nine
months ended Dec. 31, 1997, amounted to Y344.6 billion ($2,649 million) and
Y191.6 billion ($1,473 million), up 32.9% and 22.2%, respectively, from the
corresponding period last year.
The Company's consolidated income statement data for the fiscal nine
months ended Dec. 31, 1996, included a pre-tax gain of Y10.4 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 nine-month period by business segment, motorcycle unit sales
rose 5.4% from a year ago, totaling 4,131,000 units and revenue increased
12.1%, amounting to Y556.7 billion ($4,279 million). Motorcycle sales in
Europe and Latin America were the primary contributors to these increases.
Honda's overall automobile unit sales totaled 1,740,000 units, 8.5% higher
than the corresponding period last year. The automobile business revenue for
the fiscal nine months increased 13.0%, totaling Y3,450.8 billion ($26,525
million). Strong sales in North America and Europe, notably the CR-V sports
utility vehicle and the Civic 4-door model in the United States, contributed
to these increases in sales.
Unit sales of power products totaled 1,851,000 units, an increase of 13.7%
over the corresponding period of the previous year. Honda's other businesses,
including power products and financial services, registered a 30.1% increase
in revenue, amounting to Y341.8 billion ($2,628 million). Revenues generated
from the Company's power product business and financial services showed steady
increases.
SOURCE Honda Motor Co., Ltd.