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Honda Motor Co., Ltd. Reports Fiscal Q1 Results

20 August 1998

Honda Motor Co., Ltd. Reports Consolidated Financial Results for the Fiscal First Quarter Ended June 30, 1998

    TOKYO, Aug. 20 -- Honda Motor Co., Ltd. today
announced its unaudited consolidated financial results for the fiscal first
quarter ended June 30, 1998.
    Honda's consolidated net income for the fiscal first quarter ended June
30, 1998 was 78.2 billion yen ($555 million), increasing 25.7% from the
corresponding three months last year.
    Net income per Common Share for the quarter amounted to 80.27 yen ($0.57),
and 80.27 yen ($0.57) on a fully diluted basis, compared to 63.89 yen
(63.88 yen 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 totaled 1,595.3 billion yen ($11,315 million), increasing 12.4% from
the corresponding quarter a year ago.  Revenue increased due primarily to
favorable sales of automobiles in North America and Europe.
    Consolidated operating income increased 30.4% to 143.6 billion yen
($1,019 million).  In addition to higher revenue, the Company's continued cost
cutting efforts and the depreciation of the yen were the major contributing
factors to this increase.
    Consolidated income before income taxes for the quarter amounted to
137.7 billion yen ($977 million), increasing 27.5% from the first quarter of
the previous fiscal year.
    Reviewing Honda's sales for the first quarter by business segment,
motorcycle unit sales declined 24.5%, totaling 989,000 units, while revenue
from the motorcycle business declined 3.2% to 194.3 billion yen
($1,378 million).  Motorcycle sales declined in Japan and Asian countries,
especially in Indonesia and China.  Motorcycle sales in Europe and Brazil
showed favorable growth.
    Unit sales of automobiles decreased 0.3% to 571,000 units due primarily to
lower sales in Japan and Southeast Asia, while revenue from the automobile
business amounted to 1,271.2 billion yen ($9,016 million), increasing 14.4%
from the corresponding quarter last year.
    This increase in revenue was primarily attributable to favorable sales of
Honda's automobiles in North America and Europe.  Increased sales of the Civic
sedan and the CR-V in the United Sates as well as the CR-V and a new model
Civic Aero deck in Europe were major contributors to this increase.  The
depreciation of the yen also contributed to the increase in revenue.
    Unit sales of power products increased 47.9%, totaling 864,000 units,
primarily due to increased sales in North America and Europe.  Honda's other
businesses, including its power product business, generated revenue of
129.8 yen billion ($921 million), increasing 21.8% from the corresponding
period last year.  Strong sales of general-purpose engines in the United
States and Europe as well as an increase in Honda's finance services revenue
were the major contributing factors to this increase.