News Releases 2005
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CorporateJapanJanuary 28, 2005
Consolidated Financial Summary for the Fiscal 3rd Quarter Ended December 31, 2004 & Revised Forecast for Fiscal Year
On the basis of 3rd quarter results, fiscal year forecast revised upwards

Honda realized an all-time record for consolidated net sales and other operating revenue for the fiscal 3rd quarter due to an increase in overseas sales. Operating income decreased due to the negative effect from depreciation of the U.S. dollar, as well as an increase in selling, general and administrative expenses, despite increased profit from higher revenue and cost reduction effects. Net income was roughly equivalent to the all-time record 3rd quarter result of the previous fiscal year due to an increase in equity in income of affiliates. Basic net income per common share set an all-time record for any quarter. On the basis of results for the 3rd quarter, the results forecast for the entire fiscal year has been revised upwards and taking into account the important weathering of a strong yen and depreciation of the U.S. dollar, Honda aims to set all-time records for net sales and other operating revenue as well as net income.

Results for Fiscal 3rd Quarter Ended Dec. 31, 2004

(*record high for fiscal 3rd quarter, **record high for any quarter)
Yen ( billions )
  3rd Quarter ended
Dec. 31, 2004
3rd Quarter ended
Dec. 31, 2003
Difference
(% change)
Net sales and other  operating revenue 2,133.8* 1,992.2 +141.5 (+ 7.1)
Operating income 157.6 169.3 -11.6 (- 6.9)
Income before income taxes 187.9 203.5 -15.5 (- 7.7)
Equity in income of affiliates 29.3** 25.0 +4.3 (+17.5)
Net income 150.7 151.0 -0.2 (- 0.2)


Basic net income per Common share JPY 161.78** JPY 158.66 +3.12 (+ 2.0)
(Honda’s average rates: JPY 106 = U.S. dollar 1 JPY 137 = Euro 1 )
Note: Certain reclassifications have been made to the operating income of the prior year’s 3rd quarter to conform to the presentation used for the fiscal 3rd quarter ended December 31, 2004.


- Record 3rd quarter unit sales for motorcycles and automobiles

Motorcycles: Approx. 2.483 million units (+4.9%); mainly due to an increase in sales of finished products and parts for overseas production bound for Asia and an increase in sales in Europe.
Automobiles: Approx. 817 thousand units (+9.4%); the increase was mainly due to an increase in sales of parts for overseas production bound for China in Asia and increased sales in Europe.
Power Products: Approx. 1.044 million units (-1.9%); the decrease was due primarily to decreased sales in Europe.

- Consolidated net sales and other operating revenue rose to a 3rd quarter record of JPY 2,133.8 billion (+7.1%) due to an increase in overseas sales notwithstanding a negative impact from currency translation effects. (If the exchange rate from the previous fiscal 3rd qtr. was applied, Honda estimates that an increase in revenue of approximately 8.5% would have been realized.)

- Consolidated operating income decreased to JPY 157.6 billion (-6.9%) due to negative effects from currency translation effects of JPY -11.1 billion, and an increase in selling, general and administrative expenses notwithstanding increased revenues and cost reduction effects.

- Consolidated net income was JPY 150.7 billion, which is roughly equivalent to the record 3rd quarter result of last fiscal year, due to increased equity in income of affiliates totaling JPY 4.3 billion (+17.5%).

- Consolidated net sales and other operating revenue for the first 9 months of the fiscal year (April to December) was JPY 6,300.5 billion (+4.7%). Consolidated operating income for the period  was JPY 490.5 billion (+0.7%), consolidated income before income taxes was JPY 527.6 billion (-1.5%) and consolidated net income totaled JPY 392.1 billion (+0.5%). The basic net income per common share increased to JPY 418.99 (+2.7%). Consolidated net sales and other operating revenue, net income and basic net income per common share set all-time records for the first  9 months of the fiscal year (April to December).



Forecasts for Fiscal Year Ending March 31, 2005


A 5th consecutive all-time record is forecast for consolidated net sales and other operating revenue based on all-time record unit sales plans for motorcycles 10.525 million units, automobiles 3.25 million units and power products 5.36 million units. Despite the revised 4th qtr. exchange rate of JPY 103 = U.S. dollar 1 from JPY 105, Honda aims to achieve an all-time record for consolidated net income for the current fiscal year. The consolidated forecast for the fiscal year ending March 31, 2005 is as follows:


Yen (billions)
  Current forecast for year ending March 31, 2005 Year ended
March 31, 2004
Difference
(% change)
Oct. 27, 2004
forecast
Net sales and other operating revenue 8,650.0 8,162.6 +487.4 (+6.0) 8,690.0
Operating income 625.0 600.1 +24.8 (+4.1) 620.0
Income before income taxes 640.0 641.9 -1.9 (-0.3) 600.0
Net income 480.0 464.3 +15.6 (+3.4) 447.0
( Honda’s average rates for the FY2005:JPY 107 = U.S. dollar 1 JPY 135 = Euro 1 )

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