Honda Reports Results For the Fiscal Q2 and The First Half
12 November 1998
Honda Motor Co., Ltd. Reports Unaudited Consolidated Financial Results For the Fiscal Second Quarter and The First Half Ended September 30, 1998
TOKYO, Nov. 12 -- Honda Motor Co., Ltd. today
announced its unaudited consolidated financial results for the fiscal second
quarter and the first half ended September 30, 1998.
Second Quarter Results ended September 30, 1998
Honda's consolidated net income for the fiscal second quarter ended
September 30, 1998, was 80.0 billion Yen ($592 million), increasing 24.6% from
the corresponding quarter last year. Net income per Common Share, both on a
normal and fully diluted basis, for the quarter amounted to 82.16 Yen ($0.61),
compared to 65.94 Yen on a normal basis (65.93 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 amounted to 1,538.2 billion Yen ($11,365 million), increasing 11.8%
from the corresponding quarter a year ago. Favorable sales of automobiles in
North America contributed to the increase.
Consolidated operating income for the quarter totaled 153.7 billion Yen
($1,136 million), increasing 28.8% from the corresponding quarter of the
previous fiscal year. The increase in operating income was due primarily to
higher revenue and the positive effects of the depreciation of the yen,
together with the Company's continued cost cutting efforts.
Honda's consolidated income before income taxes for the quarter increased
25.5% to 143.7 billion Yen ($1,062 million).
Reviewing Honda's sales in the second quarter by business segment, Honda's
motorcycle unit sales declined 26.1% to 1,083,000 units, while revenue
amounted to 177.6 billion Yen ($1,312 million), an increase of 2.0% from the
corresponding period last year. Favorable sales in Latin America and Europe
were the primary contributors to this increase.
Unit sales of automobiles declined 3.7%, totaling 545,000 units, while
revenue increased 12.8% to 1,222.6 billion Yen ($9,033 million) for the
quarter. Increased sales in North America contributed to the increase in
revenue.
Unit sales of power products increased 23.8%, totaling 754,000 units.
Revenue from other businesses, including the power product business, increased
17.2%, amounting to 137.9 billion Yen ($1,019 million). Strong sales of power
products in North America and Europe were the major contributors to this
increase.
First Half-Year Results
Consolidated net income for the first six months ended September 30, 1998
totaled 158.2 billion Yen ($1,169 million), a 25.1% increase from the fiscal
first half last year. Net income per Common Share, both on a normal and fully
diluted basis, for the fiscal first half totaled 162.44 Yen ($1.20), compared
to 129.83 Yen on a normal basis (129.81 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 six months
totaled 3,133.5 billion Yen ($23,152 million), an increase of 12.1% from the
fiscal first half last year. This increase in revenue resulted primarily from
higher sales of automobiles in North America.
Consolidated operating income for the fiscal first half increased 29.6%,
amounting to 297.3 billion Yen ($2,197 million), due primarily to higher
revenue and the positive effects of the depreciation of the yen, together with
the Company's continued cost cutting efforts.
The yen averaged 137.83 Yen=U.S.$1 in the Tokyo foreign exchange market
during the first half-year period, 13.8% lower than during the corresponding
period last year.
Consolidated income before income taxes for the fiscal first half amounted
to 281.5 billion Yen ($2,080 million), up 26.5% from the corresponding period
last year.
Reviewing the six-month period by business segment, Honda's motorcycle
unit sales totaled 2,072,000 units and revenue amounted to 371.9 billion Yen
($2,748 million), decreasing 25.4% and 0.8%, respectively, from a year ago.
Motorcycle sales declined in Japan and Asian countries, especially in
Indonesia and China. Motorcycle sales in Europe and Brazil showed favorable
growth.
Honda's overall automobile unit sales totaled 1,116,000 units, 2.0% lower
than the corresponding period last year. The automobile business revenue for
the fiscal first half increased 13.6%, totaling 2,493.8 billion Yen ($18,426
million). Favorable sales of automobiles in North America, in particular
increased sales of the CR-V sports utility vehicle and Accord in the U.S.,
were the primary contributors to these increases.
Unit sales of power products totaled 1,618,000 units, an increase of 35.6%
over the corresponding period last year. Honda's other businesses including
power products and financial services registered a 19.4% increase in revenue,
amounting to 267.7 billion Yen ($1,978 million). Strong sales of power
products in North America and Europe were the major contributors to this
increase.
Forecasts of Financial Figures
for the Fiscal Year ending March 31, 1999
Taking into account the current status of overall businesses, the
Company's forecasts of consolidated net sales and other operating revenue and
net income for the current fiscal year ending March 31, 1999 are as follows:
( In billions of Yen )
Revised forecasts Forecasts made in
made in November 1998 May 1998
Net sales and other
operating revenue 6,400 Yen 6,200 Yen
Net income 280 270
(In Yen)
Average exchange
rate assumed 127 Yen=U.S.$1 125 Yen=U.S.$1
Forecasts of Unconsolidated Financial Figures
for the Fiscal Year ending March 31, 1999
( In billions of Yen )
Revised forecasts made Forecasts made in
in November 1998 May 1998
Net sales 2,990 Yen 2,970 Yen
Ordinary Profit 230 230
Net income 135 135
This announcement contains forward-looking statements within the meaning
of Section 21E of the U.S. Securities Exchange Act of 1934. Honda's actual
results could differ materially from those contained in these forward-looking
statements as a result of numerous factors outside of Honda's control,
including general economic conditions in Honda's principal markets and foreign
exchange rates between the Japanese yen and other major currencies, as well as
other factors detailed from time to time in Honda's reports filed with the
U.S. Securities and Exchange Commission.