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Honda Reports Consolidated Financial Results For the Fiscal Q1

11 August 1999

Honda Motor Co., Ltd. Reports Consolidated Financial Results For the Fiscal First Quarter Ended June 30, 1999

    TOKYO, Aug. 11 -- Honda Motor Co., Ltd. today
announced its unaudited consolidated financial results for the fiscal first
quarter ended June 30, 1999.
    Honda's consolidated net income for the fiscal first quarter ended June
30, 1999 was Y72.8 billion ($602 million), decreasing 6.9% 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 Y74.78 ($0.62),
compared to Y80.27 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 Y1,516.6 billion ($12,524 million), a decrease of 4.9% from the
corresponding quarter a year ago.  Unit sales in all of Honda's business
segments, namely motorcycles, automobiles and power products, increased;
however the appreciation of the yen significantly affected revenue.
    Consolidated operating income for the quarter totaled Y124.9 billion
($1,032 million), decreasing 13.0% from the first quarter of the previous
fiscal year.  Despite the increase in unit sales and Honda's ongoing cost
reduction efforts, the negative impact of the appreciation of the yen was the
major factor for this decrease in operating income.
    Consolidated income before income taxes for the quarter decreased 12.1%,
to Y121.0 billion ($1,000 million).
    Reviewing Honda's sales in the first quarter by business segment, Honda's
motorcycle unit sales increased 5.9% to 1,047,000 units, while revenue
decreased 22.1%, amounting to Y151.3 billion ($1,250 million).  This decline
in revenue was due primarily to lower sales in Latin America and a less
favorable model mix in Asia outside Japan.
    Unit sales of automobiles totaled 575,000 units, an increase of 0.7%,
while revenue decreased 3.4% to Y1,227.7 billion ($10,138 million) during the
three-month period.  This increase in unit sales was due primarily to strong
sales in the United States, supported by the Acura TL near-luxury sedan and
the Odyssey minivan; however the appreciation of the yen negatively affected
revenue.
    Unit sales of power products showed a remarkable growth, totaling
1,040,000 units, an increase of 20.4% from the corresponding period last year.
Revenue from other businesses, including the power product business and
financial services, increased 6.0%, amounting to Y137.6 billion ($1,136
million).  Honda's favorable sales of power products, in particular sales of
general-purpose engines in North America, contributed to these advances.