Honda Motor Co., Ltd. Reports Consolidated Financial Results
14 May 1999
Honda Motor Co., Ltd. Reports Consolidated Financial Results For the Fiscal Fourth Quarter and the Fiscal Year Ended March 31, 1999
TOKYO, May 14 -- Honda Motor Co., Ltd. today
announced its consolidated financial results for the fiscal fourth quarter and
the year ended March 31, 1999.
Fourth Quarter Results
Honda's consolidated net income for the fiscal fourth quarter ended March
31, 1999 was 71.1 billion Yen ($590 million), increasing 3.3% from the
corresponding three months last year. Net income per Common Share, both on a
basic and fully diluted basis, for the quarter amounted to 73.04 Yen ($0.61),
compared to 70.74 Yen (70.72 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
amounted to 1,602.6 billion Yen ($13,294 million), a decrease of 2.9% from the
corresponding quarter a year ago. Automobile sales in North America showed
steady growth, while lower sales, in particular motorcycles and automobiles in
Asia, as well as the appreciation of the Yen negatively affected revenue.
Consolidated operating income for the quarter totaled 114.1 billion Yen
($947 million), improving 7.9% from the fourth quarter of the previous fiscal
year. This increase in operating income was due primarily to decreased
selling, general and administrative expenses.
Consolidated income before income taxes for the quarter increased 4.3%, to
102.9 billion Yen ($854 million).
The Company's consolidated net income for the quarter included a gain of
21.9 billion Yen due to the enactment of an income tax rate change in Japan.
Reviewing Honda's sales in the fourth quarter by business segment, Honda's
motorcycle unit sales increased 10.5%, to 1,072,000 units, while revenue
decreased 12.3%, amounting to 184.5 billion Yen ($1,531 million). This
decline in revenue was primarily due to the appreciation of the Yen.
Unit sales of automobiles totaled 618,000 units, an increase of 2.5%,
while revenue decreased 2.4% to 1,270.5 billion Yen ($10,539 million) during
the three-month period. Although automobile unit sales in North America grew
due primarily to favorable sales of the Accord, weaker sales, in particular in
Asia, and the appreciation of the Yen negatively affected revenue.
Unit sales of power products increased 1.0% from the corresponding period
last year, totaling 1,174,000 units. Revenue from other businesses, including
the power product business and financial services, increased 6.8%, amounting
to 147.5 billion Yen ($1,224 million). Honda's favorable sales of power
products, in particular sales of general-purpose engines in North America,
contributed to these advances.
Fiscal Year Results
Consolidated net income for the fiscal year ended March 31, 1999 was 305.0
billion Yen ($2,530 million), increasing 17.0% from the previous year. Net
income per Common Share, both on a basic and fully diluted basis, for the year
amounted to 313.05 Yen ($2.60), compared to 267.49 Yen (267.45 Yen on a fully
diluted basis) for the previous year.
Consolidated net sales and other operating revenue for the year totaled
6,231.0 billion Yen ($51,688 million), an increase of 3.9% from the previous
year. This increase in revenue resulted primarily from higher sales of
automobiles in North America.
Consolidated operating income for the year increased 18.7%, amounting to
548.6 billion Yen ($4,552 million). In addition to higher revenue, the
positive impact of the depreciation of the Yen contributed to this increase.
Consolidated income before income taxes for the year amounted to 520.5 Yen
billion ($4,318 million), up 17.4% from the previous year.
The Company's consolidated net income for the year included a gain of 21.9
billion Yen due to the enactment of an income tax rate change in Japan.
Reviewing Honda's sales in the fiscal year by business segment, motorcycle
unit sales declined 19.3% from a year ago, totaling 4,118,000 units and
revenue decreased 8.6%, amounting to 700.9 billion Yen ($5,815 million).
Motorcycle sales grew in Europe and Latin America; however, the declined sales
in Asia including Japan were the major factor to these decreases.
Honda's overall automobile unit sales totaled 2,333,000 units, 0.4% lower
than the previous year. The automobile business revenue for the fiscal year
increased 5.0%, totaling 4,989.0 billion Yen ($41,386 million). Strong sales
in North America, notably the CR-V sports utility vehicle and the Accord in
the United States, contributed to this increase in revenue.
Unit sales of power products totaled 3,589,000 units, an increase of 19.1%
over the previous year. Honda's other businesses including power products and
financial services registered a 12.7% increase in revenue, amounting to 541.0
billion Yen ($4,488 million). Strong sales of power products in North America
and Europe were the major contributors to these increases.
Forecast for Fiscal Year ending March 31, 2000
With reference to the Company's forecast for the fiscal year ending March
31, 2000, the Company is determined to continue to expand its unit sales, in
particular sales of automobiles and power products in North America.
Considering the current business environment, management expects consolidated
sales and other operating revenue for the current fiscal year to amount to
approximately 6,250 billion Yen.
Despite this expected increase in sales and the Company's plan to continue
with its efforts to reduce costs, management projects consolidated net income
for the current fiscal year to total approximately 250 billion Yen. These
forecasts are based on the assumption that exchange rate of the Yen against
the U.S. dollar for the current fiscal year will average 115 Yen.
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.