Honda Reports Unaudited Consolidated Financial Results for the Fiscal Q3
15 February 2000
Honda Motor Co., Ltd. Reports Unaudited Consolidated Financial Results for the Fiscal Third Quarter and Nine Months Ended December 31, 1999
TOKYO, Feb. 15 -- Honda Motor Co., Ltd. today announced its
unaudited consolidated financial results for the fiscal third quarter and nine
months ended December 31, 1999.
Third Quarter Results ended December 31, 1999
Honda's consolidated net income for the fiscal third quarter ended
December 31, 1999 totaled 63.3 billion yen ($618 million), a decrease of 16.2%
from the same period in 1998. Net income per Common Share, both on a basic
and fully diluted basis, for the quarter amounted to 64.97 yen ($0.63),
compared to 77.57 yen of the same period in 1998. Each of Honda's American
Depositary Shares represents two Common Shares.
Unit sales in all of Honda's business segments, namely motorcycles,
automobiles and power products, increased during the quarter and consolidated
net sales and other operating revenue (herein referred to as "revenue") for
the quarter amounted to 1,448.0 billion yen ($14,141 million), a decrease of
3.1% from the same period in 1998.
This decline in revenue was due primarily to currency translation effects,
which had a negative impact on foreign currency-denominated revenue from
Honda's overseas subsidiaries translated into the yen.
Honda estimates that if the exchange rate of the yen had remained
unchanged from the same period in 1998, revenue for the third quarter would
have increased by approximately 6.9%.
Consolidated operating income for the quarter totaled 105.7 billion yen
($1,033 million), decreasing 22.9% from the same period in 1998. Despite
Honda's increased unit sales and 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 totaled 104.3
billion yen ($1,019 million), decreasing 23.3% from the same period in 1998.
Reviewing Honda's sales in the third quarter by business segment,
motorcycle unit sales increased 3.4% to 1,007,000 units, while revenue
decreased 10.5%, to 129.3 billion yen ($1,263 million). This increase in unit
sales was due primarily to higher sales in Asia, particularly in India, which
offset decreased unit sales in Japan and Europe.
Honda's unit sales of automobiles increased by 3.8% to 622,000 units,
while revenue decreased 2.6% to 1,192.2 billion yen ($11,643 million) during
the third quarter. This increase in unit sales was primarily due to strong
sales of the Odyssey and the CR-V in North America.
Unit sales of power products showed strong growth, totaling 1,049,000
units, an increase of 31.6% from the same period in 1998. Honda's
general-purpose engines in North America and Europe contributed to this
increase in unit sales. Revenue from other businesses, including the power
product business and financial services, increased 0.6% to 126.4 billion yen
($1,235 million).
Nine-Month Results
Honda's consolidated net income for the fiscal nine months ended December
31, 1999 totaled 199.6 billion yen ($1,950 million), a decrease of 14.6% from
the same period in 1998. Net income per Common Share, both on a basic and
fully diluted basis, for the fiscal nine months amounted to 204.93 yen
($2.00), compared to 240.01 yen for the same period in 1998.
Unit sales of automobiles and power products increased, while unit sales
of motorcycles, in particular in Japan and Latin America, decreased.
Consolidated net sales and other operating revenue (herein referred to as
"revenue") for the fiscal nine months amounted to 4,480.9 billion yen
($43,759 million), a decrease of 3.2% from the same period in 1998. This
decline in revenue was due primarily to currency translation effects. Honda
estimates that if the exchange rate of the yen had remained unchanged from the
same period in 1998, revenue for the nine-month period would have increased by
approximately 7.8%.
Consolidated operating income for the fiscal nine months totaled
335.3 billion yen ($3,275 million), decreasing 22.8% from the same period in
1998 primarily due to the substantial appreciation of the yen.
Consolidated income before income taxes for the fiscal nine months totaled
330.8 billion yen ($3,231 million), decreasing 20.8% from the same period in
1998.
Reviewing Honda's sales in the nine-month period by business segment,
motorcycle unit sales decreased 0.2% to 3,040,000 units, while revenue
decreased 19.6%, to 415.1 billion yen ($4,055 million). Unit sales in North
America and Asia, in particular in India and Indonesia, grew during the
period; however decreased sales in Japan and Latin America affected Honda's
motorcycle unit sales.
Honda's unit sales of automobile increased by 5.8% to 1,815,000 units,
while revenue decreased 1.2% to 3,673.1 billion yen ($35,871 million) for the
fiscal nine months. Favorable sales of automobiles, in particular the Odyssey
and the Acura TL in North America and minivehicles such as the Life and Vamos
in Japan, were the primary contributors to this increase in unit sales.
Unit sales of power products showed strong growth throughout the world,
totaling 2,931,000 units, an increase of 21.4% from the same period in 1998.
Strong sales of general-purpose engines in North America and Europe were the
major contributors to this increase in unit sales. Honda's other businesses,
including power products and financial services, registered a 0.2% decrease in
revenue, amounting to 392.5 billion yen ($3,833 million).