Honda-The Power of Dreams
Consolidated Financial Summary for the Fiscal 3rd QTR
Best ever result despite severe competition and currency effects

Results for the Fiscal 3rd QTR (*Best ever 3rd QTR result **Best ever for any QTR)
  Results (JPY billion) Same period 2002 % Change
Net sales and other operating revenue
1,992.2*
1,989.2
+ 0.2
Operating income
161.1*
158.9
+ 1.4
Income before income taxes
203.5**
158.7
+ 28.3
Net income
151.0**
115.1
+ 31.2
Basic net income per common share
JPY158.66**
JPY118.63
+33.7

(Exchange rate: JPY 109 = U.S. dollar 1   JPY 130 = Euro 1)

Depreciation of the dollar and a decline in domestic automobile sales were offset by strong overseas sales of automobiles, motorcycles and power products in the North American market as well as other regions . Honda's Net sales and other operating revenue as well as Operating income set new records for the 3rd QTR. In addition, Income before income taxes and Net income were all-time records for any QTR.

  • Unit sales for motorcycles, automobiles and power products all set all-time records
    Motorcycles: 2.367 million (+10.3%) This was led by growth in Asia and North America.
    Automobiles: 747 thousand (+6.4%) Sales were down by 25 thousand units domestically, however sales were up by 19 thousand units in North America due to strong sales of the Element, new Acura TL, Acura TSX among others as well as a 5 thousand unit increase in Europe led by Jazz and CR-V sales. In Asia, mainly China, Malaysia and Taiwan contributed to an increase of 32 thousand units.
    Power Products: 1.064 million (+23.4%) This was mostly led by brisk sales in North America.

  • Currency translation effects had a negative impact on Net sales and other operating revenue, however, sales increases in all business areas resulted in a (+0.2%) gain to JPY1,992.2 billion. (If the exchange rate from the same period during 2002 was applied, Honda estimates that an increase in revenue of approximately 6.3% would have been realized.)

  • Operating income was influenced by currency effects, but despite stiff competition, an increase in profits coming from higher revenue and cost cutting measures resulted in a (1.4%) gain to JPY161.1 billion.

  • Expansion of Asian joint venture operations and profit increases led to a great increase in Equity in income of affiliates added after tax deductions to JPY25 billion (+62.5%) resulting in an increase in net income to JPY151.0 billion (+31.2%).
Forecasts for FY2004
All-time records are forecast for Net sales and other operating revenue, Income before income taxes and Net income. These forecasts are based on the assumption that the exchange rates for the U.S. dollar and euro will average JPY112 and JPY132 respectively compared to the previous forecast of JPY114 and JPY130 on October 28, 2003.

  Current Forecast
(JPY billion)
Same period in 2002
(% change)
Ref: Oct. 28, 2003
Forecast
Net sales and other operating revenue
8,100.0
+1.6%
8,220.0
Operating income
623.0
-9.6%
623.0
Income before income taxes
648.0
+6.3%
648.0
Net income
473.0
+10.9%
470.0