Honda-The Power of Dreams
Consolidated Financial Summary for the Fiscal Year Ended March 31, 2004
Record sales amidst fierce competition; record net sales and other operating revenue for 4 consecutive fiscal years and record net income for 3 consecutive fiscal years

<Results for the Fiscal Year ended March 31, 2004 (*record result)>

Production
  Year ended March 31, 2004
(billions of JPY)
Year ended March 31, 2003
(billions of JPY)
Difference billions of JPY
(% Change)
Net sales and other  operating revenue 8,162.6* 7,971.4 +191.1 (+ 2.4%)
Operating income 600.1 724.5 -124.3 (- 17.2%)
Income before income taxes 641.9* 609.7 + 32.1  (+ 5.3%)
Net income 464.3* 426.6 + 37.6  (+ 8.8%)


Basic net income per  common share JPY 486.91* JPY 439.43 + 47.48 (+10.8%)
  (Exchange rate:  JPY 113 = U.S. dollar 1    JPY 133 = Euro 1)
Note: Operating income for the year ended March 31, 2003 is restated to reflect certain reclassifications applied to the figures for the year ended March 31, 2004.


Honda realized record consolidated net sales and other operating revenue for the fiscal year mainly due to robust overseas sales. Domestic sales saw a decline. Consolidated operating income was lower due to an increase in sales, general and administrative (SG&A) expenses as well as depreciation of the U.S. dollar. Honda’s consolidated income before income taxes and consolidated net income both reached all-time highs.

- Unit sales for motorcycles, automobiles and power products all set all-time records Motorcycles: 9.206 million (+13.9%); mainly attributable to growth in Asia and South America. Automobiles: 2.983 million (+3.3%); domestic sales declined by 133,000 units; an increase of 36,000 units in North America was led by strong light truck sales including the Element and Pilot models as well as the Acura TSX and the new Acura TL. Further, strong sales of the Jazz and Accord Diesel led to a 24,000 unit increase in Europe. A 136,000 unit increase was realized in Asia fueled predominantly by growth in China, Thailand and Malaysia. Power Products: 5.047 million (+10.1%); the increase was due primarily to sales growth in North America.

- Consolidated net sales and other operating revenue rose to JPY 8,162.6 billion (+2.4%) due to unit sales increases in all business areas notwithstanding a negative impact from currency translation effects. (If the exchange rate from the same period during the previous fiscal year was applied, Honda estimates that an increase in revenue of approximately 6.4% would have been realized.)

- Consolidated operating income decreased to JPY 600.1 billion (- 17.2%) primarily due to negative effects from currency effects of (JPY -101.0 billion ) and an increase in sales, and general and administrative expenses which offset the positive impact of increased revenues and cost reduction measures.

- Consolidated net income increased to JPY 464.3 billion (+8.8%) due predominantly to increased profits (accounted for by equity method) in joint venture companies in Asian markets of JPY 75.1 billion (+21.3%).

- The stock dividend per share planned for the end of the fiscal year ending March 31, 2004 is JPY 23, an increase of JPY 7 from that allocated at the end of the previous fiscal year. Combined with the interim dividend of JPY 19, the dividend for the whole fiscal year is expected to total JPY 42.



Forecasts for Fiscal Year Ending March 31, 2005

An all-time record is forecast for consolidated net sales and other operating revenue based on all-time record unit sales plans for motorcycles 9.29 million units (+84,000 units), automobiles 3.255 million units (+272,000 units) and power products 5.60 million units (+553,000 units). Honda’s targeted consolidated operating income, income before taxes and net income for the fiscal year ending March 31, 2005 are as follows, taking negative currency translation effects (approx. JPY -139.0 billion at the operating income level) into consideration:


  Year ended March 31, 2004
(billions of JPY)
Year ended March 31, 2003
(billions of JPY)
Difference billions of JPY
(% Change)
Net sales and other  operating revenue 8,500.0 8,162.6 +337.4 (+ 4.1%)
Operating income 560.0 600.1 -40.1 (- 6.7%)
Income before income taxes 500.0 641.9 -141.9  (- 22.1%)
Net income 390.0 464.3 - 74.3  (- 16.0%)
(Exchange rate:  JPY 105 = U.S. dollar 1   JPY 125 = Euro 1)
(With respect to operating income, an actual income increase of JPY 99.0 billion is forecast if currency translation effects are excluded.)