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| Consolidated Financial Summary for the Fiscal 4th Quarter and Fiscal Year ended March 31, 2010 |
| TOKYO, Japan, April 28, 2010 -- Honda Motor Co., Ltd. announced its consolidated financial results for the fiscal fourth quarter and the fiscal year ended March 31, 2010. ♦Consolidated Financial Summary: Results for Fiscal 4th Quarter (3 months ended March 31, 2010) Consolidated net sales and other operating revenue for the fiscal fourth quarter ended March 31, 2010 amounted to JPY 2,279.5 billion, an increase of 27.8% compared to the same period last year, primarily due to increased sales in all business segments and the favorable impact of currency translation. Consolidated operating income amounted to JPY 96.0 billion, an increase of JPY 368.2 billion from the same period last year, due mainly to increased profit from higher revenue, reduction in vehicle costs by increased production and decreased selling, general and administrative (SG&A) expenses. Consolidated income before income taxes amounted to JPY 93.5 billion, an increase of JPY 392.2 billion from the same period last year, and consolidated net income attributable to Honda Motor Co., Ltd. amounted to JPY 72.1 billion, an increase of JPY 252.1 billion compared to the same period last year.
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 three month difference between the reporting periods of the Company and the subsidiary in the consolidated financial statements. The elimination of the lag period represents a change in accounting principle and has been reported by retrospective application. The Company recorded the effect of the retrospective adjustment in the consolidated income statements for the fiscal three months ended March 31, 2009. The Company has eliminated it and adjusted the consolidated income statements for the fiscal three months ended March 31, 2009. Results for Fiscal Year ended March 31, 2010 (12 months ended March 31, 2010) Consolidated net sales and other operating revenue for the fiscal year amounted to JPY 8,579.1 billion, a decrease of 14.3% compared to the same period last year, primarily due to the unfavorable impact of currency translation and decreased revenue in automobile business. Consolidated operating income amounted to JPY 363.7 billion, an increase of 91.8% compared to the same period last year, due to decreased SG&A and R&D expenses and continuing cost reduction efforts despite decreased profit from lower revenue, the unfavorable currency effects by the appreciation of the Japanese yen and increased cost per unit due to decreased production. Consolidated income before income taxes amounted to JPY 336.1 billion, an increase of 107.9% from the same period last year, and consolidated net income attributable to Honda Motor Co., Ltd. amounted to JPY 268.4 billion, an increase of 95.9% compared to the same period last year.
Honda plans for year-end cash dividends of JPY 12 per share. Together with the fiscal first quarter cash dividends of JPY 8, the fiscal second quarter cash dividends of JPY 8 and the fiscal third quarter cash dividends of JPY 10, the total cash dividends to be paid for the year ended March 31, 2010 are planned to be JPY 38 per share, which is an increase of JPY 2 per share from the previously expected annual dividends of JPY 36 per share. The year-end dividends are matters to be resolved at general shareholders’ meeting.
Unit sales of approximately 1.68 million units for the current fiscal 4th quarter and 5.85 million units for the current fiscal year 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 the total motorcycle sales described above, in conformity with U.S. generally accepted accounting principles.
Consolidated Unit Sales Forecasts
Honda plans to distribute cash dividends of JPY 12 per share for each quarter for the fiscal year ending March 31, 2011. The total cash dividends for the fiscal year ending March 31, 2011 are planned to be JPY 48 per share, an increase of JPY 10 from the annual dividends to be paid for the year ended March 31, 2010. (*2) Unit sales of power product business include all trilateral trade transactions from the fiscal year ended March 31, 2010. The change in the presentation for unit sales of Power product business for the three month period and the fiscal year ended March 31, 2010 resulted in an increase of 19,000 and 54,000 units as compared to the presentation used in the prior periods, respectively. Trilateral trade transactions represent the transaction in which the Company purchases products from the vendors overseas and sells them to third countries. |