|Consolidated Financial Summary for the Fiscal 1st Quarter ended June 30, 2009|
|TOKYO, Japan, July 29, 2009– Honda Motor Co., Ltd. announced its consolidated financial results for the fiscal first quarter ended June 30, 2009.
♦ Consolidated Financial Summary:
Results for Fiscal 1st Quarter (3 months ended June 30, 2009)
Consolidated net sales and other operating revenue for the fiscal first quarter ended June 30, 2009 amounted to JPY 2,002.2 billion, a decrease of 30.2% compared to the same period last year, primarily due to factors including decreased sales in the automobile business and the unfavorable impact of the currency translation.
Consolidated operating income amounted to JPY 25.1 billion, a decrease of 88.0% compared to the same period last year, due to decreased profit from lower revenue, an increased fixed costs per unit as a result of reduced productions and the unfavorable currency effects caused by the appreciation of the Japanese yen, offsetting decreased selling, general and administrative (SG&A) expenses and R&D expenses and continuing cost reduction efforts.
Consolidated income before income taxes amounted to JPY 5.4 billion, a decrease of 97.6% from the same period last year, and net income attributable to Honda Motor Co., Ltd. amounted to JPY 7.5 billion, a decrease of 95.6% compared to the same period last year.
At the board of directors meeting held today, Honda resolved to make the quarterly dividend for the first quarter JPY 8 per share of the common stock with the record date of June 30, 2009. The total annual dividend per share of common stock to be paid for the fiscal year is expected to be JPY 32 per share.
♦ 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.)
♦ Forecast for the Fiscal Year Ending March 31, 2010
Honda will conduct its business operations based on the target for the forecasts for the fiscal year ending March 31, 2010 as described below, with assumption of the average currency exchange rates of JPY 91 = U.S. dollar 1 and JPY 127 = Euro 1 for the fiscal year.
Consolidated Unit Sales Forecast
Unit sales of approximately 5.61 million units of Honda-brand motorcycle products that 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 are not included in this total motorcycle sales described above, in conformity with U.S. generally accepted accounting principles.
< Reference: Changes in forecasts for the fiscal year ending March 31, 2010 in comparison to the previous forecast as of April 28, 2009 >
During the fiscal year ended March 31, 2009, a subsidiary of the Company changed its fiscal year-end from December 31 to March 31. As a result, the Company eliminated the previously existing 3-month difference between the reporting periods of the Company and the subsidiary in the consolidated financial statements. The elimination of the lag period which was adjusted in the three months ended March 31, 2009 represented a change in accounting principle and was reported by retrospective application. Honda adjusted its consolidated financial statements as of and for the three months ended June 30, 2008 to conform to the presentation used for the fiscal year ended March 31, 2009.