TOKYO, Japan, April 28, 2009– Honda Motor Co., Ltd. announced its consolidated financial results for the fiscal fourth quarter and the fiscal year ended March 31, 2009.
♦ Consolidated Financial Summary:
Results for Fiscal 4th Quarter (3 months ended March 31, 2009)
Consolidated net sales and other operating revenue for the fiscal fourth quarter ended March 31, 2009 amounted to JPY 1,783.8 billion, a decrease of 41.6% compared to the same period a year ago, primarily due to factors including the negative impact of currency translation and decreased sales in automobile business.
Consolidated operating loss amounted to JPY 283.0 billion, a decrease of JPY 451.8 billion compared to the same period a year ago, due to decreased profit from lower revenue, the increase in fixed costs per unit as a result of reduced productions, increased raw material costs, the negative impact of currency effects caused by the appreciation of the Japanese yen and expenses related to withdrawal from some racing activities and cancellations of development of new models, more than offsetting continuing cost reduction efforts and decreased selling, general and administrative (SG&A) and R&D expenses.
Consolidated loss before income taxes amounted to JPY 309.5 billion, a decrease of JPY 456.4 billion from the same period a year ago, and net loss amounted to JPY 186.1 billion, a decrease of JPY 211.5 billion compared to the same period a year ago.
| Yen (billions) |
4th quarter ended
March 31, 2008 |
4th quarter ended
March 31, 2009 |
Difference
(% change) |
Status of the fiscal 4th quarter ended March 31, 2009 |
| Net sales and other operating revenue |
3,055.5 |
1,783.8 |
-1,271.6
(-41.6) |
Decreased for the 2nd consecutive year |
Operating income
(loss) |
168.8 |
(283.0) |
-451.8 |
Decreased for the 3rd consecutive year |
| Income (loss) before Income taxes |
146.8 |
(309.5) |
-456.4 |
Decreased for the 3rd consecutive year |
| Equity in income of affiliates |
24.3 |
2.7 |
-21.6
(-88.7) |
Decreased for the first time in 2 years |
| Net Income (loss) |
25.4 |
(186.1) |
-211.5 |
Decreased for the 3rd consecutive year |
| Exchange rate: |
Honda’s average rates for this fiscal 4th quarter: JPY 94=USD1 / JPY 121=Euro1 |
| |
Honda’s average rates for the previous fiscal 4th quarter: JPY106=USD1 / JPY158=Euro1 |
Results for Fiscal Year ended March 31, 2009 (12 months ended March 31, 2009)
Consolidated net sales and other operating revenue for the fiscal year ended March 31, 2009 amounted to JPY 10,011.2 billion, a decrease of 16.6% compared to the same period a year ago, due to factors including the negative impact of currency translation and decreased sales in automobile business.
Consolidated operating income amounted to JPY 189.6 billion, a decrease of 80.1% compared to the same period a year ago, due to decreased profit from lower revenue, increased raw material costs, the increase in fixed costs per unit as a result of reduced productions, the negative impact of currency effects caused by the appreciation of the Japanese yen and expenses related to withdrawal from some racing activities and cancellations of development of new models, despite the positive effect of continuing cost reduction efforts, and decreased R&D expenses.
Income before income taxes amounted to JPY 161.7 billion, a decrease of 81.9% compared to the same period a year ago, and net income amounted to JPY 137.0 billion, a decrease of 77.2% compared to the same period a year ago.
| Yen (billions) |
Fiscal year ended March 31, 2008 |
Fiscal year ended March 31, 2009 |
Difference
(% change) |
Status of the fiscal year ended
March 31, 2009 |
| Net sales and other operating revenue |
12,002.8 |
10,011.2 |
-1,991.5
(-16.6) |
Decreased for the first time in 9 years |
| Operating income |
953.1 |
189.6 |
-763.4
(-80.1) |
Decreased for the first time in 2 years |
| Income before Income taxes |
895.8 |
161.7 |
-734.1
(-81.9)) |
Decreased for the first time in 2 years |
| Equity in income of affiliates |
118.9 |
99.0 |
-19.9
(-16.7) |
Decreased for the first time in 10 years |
| Net Income |
600.0 |
137.0 |
-463.0
(-77.2) |
Decreased for the first time in 2 years |
| Exchange rate: |
Honda’s average rates for the fiscal year ended March 31, 2009: JPY101=USD1 / JPY142=Euro1 |
| |
Honda’s average rates for the fiscal year ended March 31, 2008: JPY114=USD1 / JPY162=Euro1 |
Honda plans for a year-end cash dividend of JPY 8 per share. Together with the fiscal first quarter cash dividends of JPY 22, the fiscal second quarter cash dividends of JPY 22 and the fiscal third quarter cash dividends of JPY 11, the total cash dividends to be paid for the year ended March 31, 2009 are planned to be JPY 63 per share, which is a decrease of JPY 23 compared to the previous fiscal year. The year-end dividends are matters to be resolved at general shareholders’ meeting.
| ♦ |
Consolidated unit sales
(Consolidated unit sales are the total of sales of completed products of Honda and its consolidated subsidiaries, and sales of parts for local production at Honda’s affiliates accounted for under the equity method.) |
| |
4th quarter ended
March 31, 2009 |
Difference
(% change) |
|
Major factors of increase/decrease |
| Motorcycles |
| 2.002 million units |
(-15.5) |
|
Decreased sales in all regions |
| Automobiles |
| 0.68 million units |
(-35.3) |
|
Decreased sales in all regions |
| Power Products |
| 1.531 million units |
(-26.8) |
|
Decreased sales in all regions |
| |
Fiscal year ended
March 31, 2009 |
Difference
(% change) |
|
Major factors of increase/decrease |
| Motorcycles |
| 10.114 million units |
(+8.5) |
|
Increased sales of parts for local production at Honda's overseas affiliates accounted for under the equity method and increased sales in the “Other” region which includes Brazil. |
| Automobiles |
| 3.517 million units |
(-10.4) |
|
Decreased sales in Japan and North America despite an increase in Asia and the “Other” region which includes Brazil. |
| Power Products |
| 5.187 million units |
(-14.1) |
|
Decreased sales in Japan, North America and Europe. |
Unit sales of approximately 1.1 million units for the fiscal 4th quarter and 4.7 million units for the fiscal year ended March 31, 2009 of Honda-brand motorcycle products are not included in the totals listed above, in conformity with U.S. generally accepted accounting principles, because they are manufactured and sold by overseas affiliates accounted for under the equity method, but do not use any parts supplied from Honda and its consolidated subsidiaries.
|
| ♦ |
Forecast for the Fiscal Year Ending March 31, 2010
Honda will conduct its business operations based on the target for a full year financial results forecast for the fiscal year ending March 31, 2010 as described below, with assumption of the average currency exchange rate of JPY 95 = U.S. dollar 1 and JPY 125 = Euro 1 for the fiscal year. |
| Yen (billions) |
Fiscal year ended
March 31, 2009 |
Forecast for fiscal year ending
March 31, 2010 |
Difference
(% change) |
Forecast Status |
| Net sales and other operating revenue |
10,011.2 |
8,370.0 |
-1,641.2
(-16.4) |
Decreased for the 2nd consecutive year |
| Operating income |
189.6 |
10.0 |
-179.6
(-94.7) |
Decreased for the 2nd consecutive year |
| Income before Income taxes |
161.7 |
10.0 |
-151.7
(-93.8) |
Decreased for the 2nd consecutive year |
| Equity in income of affiliates |
99.0 |
50.0 |
-49.0
(-49.5) |
Decreased for the 2nd consecutive year |
| Net Income |
137.0 |
40.0 |
-97.0
(-70.8) |
Decreased for the 2nd consecutive year |
| Exchange rate: |
Honda’s average rates for the fiscal year ended March 31, 2009: JPY101=USD1 / JPY142=Euro1 |
Consolidated Unit Sales Forecast
| |
Fiscal year ending
March 31, 2010 |
Difference
(% change) |
|
| Motorcycles |
| 8.595 million units |
(-15.0) |
|
| Automobiles |
| 3.21 million units |
(-8.7) |
|
| Power Products |
| 4.66 million units |
(-10.2) |
|
Unit sales of approximately 5.38 million units of Honda-brand motorcycle products are not included in this total, in conformity with U.S. generally accepted accounting principles, because they are manufactured and sold by overseas affiliates accounted for under the equity method, but do not use any parts supplied from Honda and its consolidated subsidiaries.
Honda plans to distribute quarterly cash dividends of JPY 8 per share for each quarter for the year ending March 31, 2010. The total cash dividends for the fiscal year ending March 31, 2010 are planned to be JPY 32 per share, a decrease of JPY 31 from the annual dividends to be paid for the year ended March 31, 2009.
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April 28, 2009 
