Power Products Business
In fiscal year 2001, although unit sales of Honda's power products were up in Asia, unit sales were down in Japan, North America and Europe, resulting in a 4.3% decline in worldwide sales for the year, to 3,884,000 units. Reasons for the decline in unit sales include lower sales of general-purpose engines in North America and Europe and a relative decline in sales of generators after a surge in demand in the prior fiscal year related to the Y2K issue. 

In Japan, power products unit sales declined 10.4%, to 164,000 units, due to weaker sales of generators and general-purpose engines.

In North America, due to the decline in sales of generators and greater price competition in the lawnmower engine category, unit sales of power products declined 12.5%, to 1,412,000 units.

In Europe, power products unit sales declined 4.2%, to 1,269,000 units, as a result of weaker orders for general-purpose engines from lawnmower manufacturers.

In other regions, unit sales of power products increased 11.1%, to 1,039,000 units.

By enhancing operations in every field, Honda anticipates worldwide unit sales of power products for fiscal 2002 to increase 18.9%, to 4,620,000 units.

Financial Services Business
Honda's financial services business supports Honda's sales activities, providing financial services for authorized dealers and their customers in Japan, the United States, Canada, the United Kingdom, Germany, and Brazil. 

In fiscal 2001, due primarily to favorable automobile sales in North America, net sales from Honda's financial services business increased 23.5% from the previous fiscal year, to ¥169.2 billion ($1,366 million). Operating income increased 70.6%, to ¥30.8 billion ($249 million), resulting in an operating margin of 18.2%.