Honda Motor Co., Ltd. Reports Unaudited Consolidated Financial Results
18 February 1999
Honda Motor Co., Ltd. Reports Unaudited Consolidated Financial Results For the Fiscal Third Quarter and Nine Months Ended December 31, 1998
TOKYO, Feb. 18 -- Honda Motor Co., Ltd. today announced its
unaudited consolidated financial results for the fiscal third quarter and nine
months ended December 31, 1998.
Third Quarter Results
Honda's consolidated net income for the fiscal third quarter ended
December 31, 1998 was Y75.5 billion ($653 million), increasing 15.9% from the
corresponding three months last year. Net income per Common Share, both on
basic and fully diluted bases, for the quarter amounted to Y77.57 ($0.67),
compared to Y66.92 (Y66.91 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 Y1,494.8 billion ($12,920 million), a decrease of 3.9% from
the corresponding quarter a year ago. Automobile sales in North America
showed a favorable growth, while lower sales, in particular automobiles in
Japan and motorcycles in Asia, negatively affected revenue.
Consolidated operating income for the quarter totaled Y137.1 billion
($1,185 million), improving 7.9% from the third quarter of the previous fiscal
year. This increase in operating income was due primarily to positive effects
of the depreciation of the yen.
Consolidated income before income taxes for the quarter increased 11.5%,
to Y136.0 billion ($1,176 million).
Reviewing Honda's sales in the third quarter by business segment, Honda's
motorcycle unit sales decreased 28.1%, to 974,000 units, and revenue decreased
20.6%, amounting to Y144.5 billion ($1,249 million). These declines were
primarily due to lower sales, particularly in Asia.
Unit sales of automobiles totaled 599,000 units and revenue amounted to
Y1,224.6 billion ($10,585 million) during the three-month period, decreasing
0.3% and 2.4%, respectively. Although automobile sales in North America grew
due primarily to favorable sales of the Accord and the new Acura TL luxury
sedan, weaker sales in Japan and Europe negatively affected both unit sales
and revenue.
Unit sales of power products expanded 21.1% from the corresponding period
last year, totaling 797,000 units. Honda's sales of power products during the
quarter were favorable, in particular sales of general-purpose engines in
Europe and North America contributed to these advances. Revenue from other
businesses, including the power product business and financial services,
increased 6.9%, amounting to Y125.6 billion ($1,086 million).
Nine-Month Results
Consolidated net income for the fiscal nine months ended December 31, 1998
was Y233.8 billion ($2,021 million), increasing 22.0% from the corresponding
period last year. Net income per Common Share, both on basic and fully
diluted bases, for the fiscal nine months amounted to Y240.01 ($2.07),
compared to Y196.75 (Y196.72 on a fully diluted basis) for the corresponding
period a year ago.
Consolidated net sales and other operating revenue for the fiscal nine
months under review totaled Y4,628.4 billion ($40,004 million), an increase of
6.4% from the corresponding period last year. This increase in revenue
resulted primarily from higher unit sales of automobiles in North America.
Consolidated operating income for the nine months increased 21.9%,
amounting to Y434.5 billion ($3,755 million). In addition to higher revenue,
the positive impact of the depreciation of the yen and Honda's ongoing cost
reduction efforts also contributed to this increase.
Consolidated income before income taxes for the fiscal nine months ended
December 31, 1998 amounted to Y417.5 billion ($3,609 million), up 21.2% from
the corresponding period last year.
Reviewing Honda's sales in the nine-month period by business segment,
motorcycle unit sales declined 26.3% from a year ago, totaling 3,046,000 units
and revenue decreased 7.2%, amounting to Y516.4 billion ($4,464 million).
Motorcycle sales grew in Latin America and Europe; however, the declined sales
in Japan and Asia were the major attributing factors to these decreases.
Honda's overall automobile unit sales totaled 1,715,000 units, 1.4% lower
than the corresponding period last year. The automobile business revenue for
the fiscal nine months increased 7.8%, totaling Y3,718.5 billion ($32,140
million). Strong sales in North America, notably the Accord and the CR-V
sports utility vehicle in the United States, contributed to this increase in
revenue.
Unit sales of power products totaled 2,415,000 units, an increase of 30.5%
over the corresponding period of the previous year. Honda's other businesses
including power products and financial services registered a 15.1% increase in
revenue, amounting to Y393.4 billion ($3,400 million). Strong sales of power
products in North America and Europe were the major contributors to these
increases.