Consolidated Financial Summary for the Fiscal First Half Ended September 30, 2005
A fifth consecutive all-time record first half results for net sales and other operating revenue and net income. Fiscal year forecast revised upwards.
|TOKYO, Japan, October 27, 2005 – Honda Motor Co., Ltd. today announced that in the first half of the current fiscal year, it realized a fifth consecutive all-time record for consolidated net sales and other operating revenue due to increased sales in each business area of automobiles, motorcycles and power products. Consolidated operating income was almost same level as the corresponding period in 2004, mainly consisting of increased revenues, cost reduction effects, positive effects from the depreciation of the Japanese Yen. These factors offset an increase in selling, general and administrative (SG&A) expenses and research and development (R&D) expenses. Honda’s consolidated net income was a record high for the fifth consecutive fiscal first half.
The forecast for the entire fiscal year has been revised upwards and Honda aims to set a sixth consecutive all-time record for net sales and other operating revenue as well as a fifth consecutive all-time record for net income. (In the same period of the previous fiscal year, Honda incurred an additional tax of approximately JPY 11.7 billion due to a reassessment of transfer pricing related to its motorcycle operations in Brazil.)
The interim dividend per common share increased by 12 yen to a total of 40 yen. Combined with the year-end dividend of 40 yen, also increased by 3 yen, the total dividend to be paid for the entire fiscal year is 80 yen, an increase of 15 yen compared to the previous fiscal year.
Results for Fiscal first Half ended Sept. 30, 2005 (*record result for fiscal first half)
Record unit sales were realized in the automobile and power product business areas. (Totals include fully finished products made by Honda and its subsidiaries as well as unit sales of parts for local production at affiliates accounted for under the equity method.)
Motorcycles: 5.07 million units (-4.0%); the decrease was due primarily to the decreased sales of parts for overseas production bound for affiliated companies in Asia. (Approximately 930,000 motorcycles with local procurement rates of 100% which were procured and sold by affiliates in China and India are not included in the financial results to be in conformity with Generally Accepted Accounting Principles in the U.S.)
Automobiles: 1.674 million units (+6.9%); the increase was mainly due to an increased sales in North America.
Power Products: 2.623 million units (+6.1%); the increase was due primarily to sales growth in Asia.
Forecasts for Fiscal Year Ending March 31, 2006
A sixth consecutive all-time record is forecast for consolidated net sales and other operating revenue based on all-time record unit sales plans for motorcycles 10.570 million units, automobiles 3.425 million units and power products 5.86 million units. (Unit sales of motorcycles, with local procurement rates of 100% which are produced and sold by affiliates in China and India, are expected to increase by 1.86 million units to a total of 2.86 million units, but are not included in the sales plan total and financial forecasts to be in conformity with Generally Accepted Accounting Principles in the U.S.) Honda aims to achieve its fifth consecutive all-time record for consolidated net income in the current fiscal year.
The consolidated forecast for the fiscal year ending March 31, 2006 is as follows:
(Honda’s average rates for the FY2006: JPY 110 = U.S. dollar 1 JPY 135 = Euro 1)(Honda’s average rates for the second half of FY2006: JPY 110 = U.S. dollar 1 JPY 135 = Euro 1)