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Honda Reports Results for Fiscal Q1 2000

11 August 2000

Honda Motor Co., Ltd. Reports Unaudited Consolidated Financial Results for the Fiscal First Quarter Ended June 30, 2000

    TOKYO - Honda Motor Co., Ltd. announced its unaudited consolidated financial 
results for the fiscal first quarter ended June 30, 2000.

    Honda's consolidated net income for the fiscal first quarter ended
June 30, 2000 totaled Y63.8 billion ($605 million), a decrease of 12.4% from
the same period in 1999.  Net income per Common Share, both on a basic and
fully diluted basis, for the quarter amounted to Y65.48 ($0.62), compared to
Y74.78 for the same period in 1999.  Each of Honda's American Depositary
Shares represents two Common Shares.

    Unit sales in all of Honda's business categories, namely motorcycles,
automobiles and power products, increased during the fiscal first quarter and
consolidated net sales and other operating revenue (herein referred to as
"revenue") for the quarter amounted to Y1,549.4 billion ($14,687 million), an
increase of 2.2% 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 quarter would have increased by approximately 12.4%.

    Consolidated operating income for the fiscal first quarter totaled
Y104.3 billion ($989 million), a decrease of 16.5% 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
Y101.7 billion ($965 million), decreasing 15.9% from the same period in 1999.

    With respect to Honda's sales in the fiscal first quarter taken by
business category, motorcycle unit sales increased 12.1% to 1,226,000 units,
and revenue increased 10.8%, to Y197.8 billion ($1,875 million).  This
increase in unit sales was due primarily to higher sales in such Asian
countries as India and Thailand.

    Honda's unit sales of automobiles increased by 10.6% to 636,000 units, and
revenue increased 1.8%, to Y1,249.4 billion ($11,843 million) during the
quarter.  This increase in unit sales was primarily due to strong sales of the
Odyssey and the introduction of the minivehicle Vamos in Japan, as well as the
sales of Odyssey and the CR-V in North America.

    Unit sales of power products totaled 1,029,000 units, an increase of
3.6% compared to the same period in 1999.  Honda's general-purpose engines in
Europe and Asia contributed to this increase in unit sales.  Revenue from
other businesses, including the power product business and financial services,
decreased by 7.4% to Y102.1 billion ($968 million).  The appreciation of the
yen was the primary contributor to this decrease in revenue.