|Consolidated Financial Summary for the Fiscal Year Ended March 31, 2005|
|Amidst an environment of severe competition, record sales realized in each business area; record net sales and other operating revenue for 5 consecutive fiscal years and record net income for 4 consecutive fiscal years.
Honda realized an all-time record for consolidated net sales and other operating revenue for the fiscal year due to increased sales in each business area. Operating income increased due to increased profit from higher revenue and cost reduction effects despite the negative effect from depreciation of the U.S. dollar, as well as an increase in selling, general and administrative (SG&A) expenses. Net income set an all-time record due in part to a large increase in equity in income of affiliates.Basic net income per common share also reached an all-time high.
The year-end dividend per common share rose by JPY 14 to JPY 37. Combined with the interim dividend of JPY 28, the total dividend to be paid for the entire fiscal year is JPY 65, an increase of JPY 23 compared to the previous fiscal year.
Results for Fiscal Year Ended March 31, 2005
(Honda’s average rates: JPY 108 = U.S. dollar 1 JPY 135 = Euro 1)
Motorcycles: Approx. 10.482 million units (+13.9%); mainly due to an increase in sales in Asia led by Indonesia and India. (This does not include the approximately 1 million motorcycles with local procurement rates of 100% which are produced and sold by affiliates in China and India.)
Automobiles: Approx. 3.242 million units (+8.7%); the increase was mainly due to an increase in sales in China, Indonesia and other parts of Asia as well as Europe and North America.
Power Products: Approx. 5.30 million units (+5.0%); the increase was due primarily to increased sales in North America and Asia.
Forecasts for Fiscal Year Ending March 31, 2006
A 6th consecutive all-time record is forecast for consolidated net sales and other operating revenue based on a unit sales plan of 10.295 million motorcycles, 3.415 million automobiles and 5.79 million power products. (Unit sales of motorcycles, with local procurement rates of 100% which are produced and sold by legal affiliates in China and India, are expected to increase by 2.4 million units to 3.4 million units, but are not included in the sales plan total.) The consolidated forecast for the fiscal year ending March 31, 2006 is as follows: