Honda Motor Co. Consolidated Financial Results
12 May 2000
Honda Motor Co., Ltd. Reports Consolidated Financial Results For the Fiscal Fourth Quarter and the Fiscal Year Ended March 31, 2000
TOKYO - Honda Motor Co., Ltd. today announced its consolidated financial
results for the fiscal fourth quarter and the year ended March 31, 2000.
Fourth Quarter Results
Honda's consolidated net income for the fiscal fourth quarter ended March
31, 2000 totaled Yen 62.7 billion ($591 million), a decrease of 11.9% from the
same period in 1999. Net income per Common Share, both on a basic and fully
diluted basis, for the quarter amounted to Yen 64.37 ($0.61), compared to Yen
73.04 of the same period in 1999. 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 Yen 1,617.9 billion ($15,242 million), an increase of
1.0% from the same period in 1999. Revenue includes currency translation
effects, which had a negative impact on foreign currency-denominated revenue
from Honda's overseas subsidiaries translated into yen. Honda estimates that
had the exchange rate of yen remained unchanged from the same period in 1999,
then revenue for the fourth quarter would have increased by approximately
8.1%.
Consolidated operating income for the quarter totaled Yen 90.9 billion
($856 million), a decrease of 20.4% compared to the same period in 1999.
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 Yen
85.2 billion ($803 million), decreasing 17.2% from the same period in 1999.
With respect to Honda's sales in the fourth quarter taken by business
segment, motorcycle unit sales increased 9.4% to 1,227,000 units, and revenue
increased 1.5%, to Yen 216.5 billion ($2,040 million). This increase in unit
sales was due primarily to higher sales in Asia, particularly in Indonesia and
Thailand.
Honda's unit sales of automobiles increased by 6.5% to 658,000 units, and
revenue increased 1.4%, to Yen 1,287.8 billion ($12,132 million) during the
fourth quarter. This increase in unit sales was primarily due to strong sales
of the Odyssey and the Civic in North America.
Unit sales of power products showed strong growth, totaling 1,295,000
units, an increase of 15.2% compared to the same period in 1999. Honda's
general-purpose engines in North America and Europe contributed to the
increase in unit sales. Revenue from other businesses, including the power
product business and financial services, decreased by 4.5% to
Yen 113.5 billion ($1,070 million).
Fiscal Year Results
Honda's consolidated net income for the year ended March 31, 2000 totaled
Yen 262.4 billion ($2,472 million), a decrease of 14.0% from the previous
year. Net income per Common Share, both on a basic and fully diluted basis,
for the year amounted to Yen 269.31 ($2.54), compared to Yen 313.05 for the
previous year.
Unit sales in all of Honda's business segments, namely motorcycles,
automobiles and power products, increased and consolidated net sales and other
operating revenue (herein referred to as "revenue") for the year amounted to
Yen 6,098.8 billion ($57,455 million), a decrease of 2.1% from the previous
year.
This decline in revenue was due primarily to the effect of currency
translation. Honda estimates that had the exchange rate of the yen remained
unchanged from the previous year, then revenue for the year would have
increased by approximately 7.9%.
Consolidated operating income for the year totaled Yen 426.2 billion
($4,015 million), a decrease of 22.3% compared to the previous year. This was
primarily due to the substantial appreciation of the yen.
Consolidated income before income taxes for the year totaled Yen 416.0
billion ($3,920 million), a decrease of 20.1% compared to the previous year.
With respect to Honda's sales in the fiscal year by business segment,
motorcycle unit sales increased 3.3% to 4,436,000 units, while revenue
decreased 11.0% to Yen 718.9 billion ($6,773 million). Unit sales in Asia,
particularly in Indonesia and India, as well as in North America, grew during
the period.
Honda's unit sales of automobile increased by 6.0% to 2,473,000 units,
while revenue decreased 0.6% to Yen 4,961.0 billion ($46,736 million) for the
fiscal year. Favorable sales of automobiles, in particular the Odyssey and
the Acura TL in North America and minivehicles such as the Vamos and Life in
Japan, were the primary contributors to this increase in unit sales.
Unit sales of power products showed strong growth throughout the world,
totaling 4,057,000 units, representing an increase of 18.9% compared to the
previous year. 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, suffered a
3.6% decrease in revenue, amounting to Yen 418.9 billion ($3,946 million).
Forecast for Fiscal Year ending March 31, 2001
With reference to the Company's forecast for the fiscal year ending March
31, 2001, although the economies of Asian countries are expected to continue
to recover, economic growth in the United States and Europe is expected to be
unpredictable and yen is expected to continue to appreciate against the major
foreign currencies. It will take some time for consumer spending in Japan to
recover. Due to a business environment expected to be severe, in view of
changes in the automotive industry and tougher sales competition, the Company
forecasts a slight increase in consolidated net sales and other operating
revenue, while it forecasts that income before income taxes and net income
will decrease as follows:
First half ending September 30, 2000 Changes from previous year
Net sales and other operating revenue
Yen 3,080 billion +1.6%
Income before income taxes
Yen 160 billion -29.3%
Net income
Yen 100 billion -26.7%
Fiscal year ending March 31, 2001 Changes from previous year
Net sales and other operating revenue
Yen 6,200 billion +1.7%
Income before income taxes
Yen 300 billion -27.9%
Net income
Yen 190 billion -27.6%
These forecasts are based on the assumption that exchange rates of the yen
against the U.S. dollar and the euro for the current fiscal year will average
Yen 105 and Yen 100, respectively.