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Net
Sales and Other Operating Revenue
Honda's consolidated net sales and other operating revenue (hereafter "net sales")
for fiscal 2002, ended March 31, 2002, amounted to ¥7,362.4 billion, up 13.9%
from the previous fiscal year. This gain was driven primarily by increases in
unit sales in each of our automobile, motorcycle and power products categories.
Higher net sales also reflected currency translation effects, which had a positive
impact on foreign currency-denominated revenue from Honda's overseas subsidiaries
when translated into yen. Honda estimates that had exchange rates remained at
the same level as in fiscal 2001, net sales and other operating revenue would
have risen approximately 5.3%.
Operating Income
Operating income soared 57.1% from the previous fiscal year, to ¥639.2 billion,
as strong demand for Honda automobiles prompted significant unit sales gains in
Japan and North America. Improved operating income was also attributable to ongoing
cost-cutting strategies and a weaker yen.
Selling, General and Administrative (SG&A) Expenses
SG&A expenses for fiscal 2002 were up 12.7%, to ¥1,291.7 billion, largely as a
consequence of higher advertising expenses, an increase in product warranty-related
expenses – paralleling unit sales gains – and rising personnel expenses.
Research and Development (R&D) Expenses
The aim of Honda's R&D activities is to create, through application of the latest
technologies, products that are both distinctive and internationally competitive.
To this end, the Company maintains R&D functions as independent corporate entities,
thereby enabling engineers to engage in R&D without constraint. Principal companies
responsible for product research include Honda R&D Co., Ltd., Honda R&D Americas,
Inc., and Honda R&D Europe (Deutschland) G.m.b.H., while research in the area
of production technology is carried out by Honda Engineering Co., Ltd., and Honda
Engineering North America, Inc. Each company cooperates closely with the communities
in which it operates.
R&D expenses in fiscal 2002 totaled ¥395.1 billion. |
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