Honda-The Power of Dreams
Consolidated Financial Summary for the Fiscal 2nd Quarter and the Fiscal First Half ended September 30, 2010
-Upward revision to forecast of fiscal consolidated operating income and net income to 500 billion yen-

TOKYO, Japan, October 29, 2010 - Honda Motor Co., Ltd. announced its consolidated financial results for the fiscal second quarter and the fiscal first half ended September 30, 2010.

Consolidated Financial Summary:

Despite the unfavorable currency effects due to the appreciation of the Japanese yen, consolidated operating income for both the fiscal second quarter (July 1, 2010 through September 30, 2010) and the fiscal first half (April 1, 2010 through September 30, 2010) increased compared to the same period last year, primarily due to increased profit in automobile business in Japan, North America and Asia as well as motorcycle business in Asia. Equity in income of affiliates including profit of joint ventures in China also increased compared to the same period last year.

Honda made an upward revision to the forecast for consolidated operating income for the FY11 (a fiscal year ending March 31, 2011) from the previous 450 billion yen to 500 billion yen. This upward revision was based on the forecast for an increase in profit due to the expansion of motorcycle business in Asia, improved model mix in North America, cost reduction, and increased profit from financial business, offsetting unfavorable effects of the revised average currency exchange rate assumption for the fiscal second half to 80 yen to the U.S. dollar. The forecast for fiscal net income(*1) was also revised upward from the previous 455 billion yen to 500 billion yen due to the forecasted increase in equity in income of affiliates mainly in Japan and Asia in addition to an increase in operating income.

  2nd quarter ended Sep, 30, 2009 2nd quarter ended Sep. 30, 2010 Difference Fiscal first half ended Sep. 30, 2009 Fiscal first half ended Sep. 30, 2010 Difference
Consolidated Unit Sales (million units)
Motorcycles(*2) 2.407 2.729 + 0.322 4.659 5.616 +0.957
Automobiles(*3) 0.838 0.898 + 0.060 1.604 1.797 +0.193
Power Products(*4) 0.943 1.166 + 0.223 2.115 2.606 +0.491
Financial Results (billion yen)
Net sales and other operating revenue 2,056.6 2,251.9 +195.2 4,058.8 4,613.3 +554.5
Operating income 65.5 163.4 +97.9 90.7 397.9 +307.2
Income before income taxes 66.1 166.2 +100.0 71.5 422.3 +350.7
Equity in income of affiliates 22.3 35.6 +13.2 36.5 71.2 +34.7
Net income(*1) 54.0 135.9 +81.8 61.5 408.4 +346.8
Honda’s Average Rates (Yen)
USD = 94 86 Yen up by
8 yen
95 89 Yen up by
6 yen
EUR = 134 111 Yen up by
23 yen
133 115 Yen up by
18 yen



  FY 10 results FY11 forecasts announced on Jul. 30, 2010

FY11 forecasts revised on Oct. 29, 2010

Difference from FY10 Difference from forecasts announced on Jul 30, 2010
Consolidated Unit Sales (million units)
Motorcycles(*2) 9.639 10.820 11.490 + 1.851 +0.670
Automobiles(*3) 3.392 3.640 3.615 + 0.223 -0.025
Power Products(*4) 4.744 5.545 5.565 + 0.821 +0.020
Financial Results (billion yen)
Net sales and other operating revenue 8,579.1 9,100.0 9,000.0 +420.8 -100.0
Operating income 363.7 450.0 500.0 +136.2 +50.0
Income before income taxes 336.1 470.0 535.0 +198.8 +65.0
Equity in income of affiliates 93.2 98.0 117.0 +23.7 +19.0
Net income(*1) 268.4 455.0 500.0 +231.6 +45.0
Honda’s Average Rates (Yen)
USD = 93 87 84 Yen up by
9 yen
Yen up by
3 yen
EUR = 130 112 113 Yen up by
17 yen
Yen up by
1 yen


(*1) Net income attributable to Honda Motor Co., Ltd. based on U.S. generally accepted accounting principles.

(*2) Unit sales of approximately 1.95 million units for the current fiscal 2nd quarter, 3.73 million units for the current fiscal first half and approximately 7.12 million units for the forecast of the fiscal year ending March 31, 2011 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 total sales of our motorcycle segment or in our measure of unit sales, in conformity with U.S. generally accepted accounting principles.

(*3) Certain sales of automobiles that are financed with residual value type auto loans by our domestic finance subsidiaries are accounted for as operating leases in conformity with U.S. generally accepted accounting principles. As a result, they are not included in total sales of our automobile segment or in our measure of unit sales.

(*4) Unit sales of power products include all trilateral trade transactions from the fiscal year ended March 31, 2010. This change was made and reported by retrospective application in the three months ended March 31, 2010. Honda adjusted unit sales of power products for the three months and the fiscal first half ended September 30, 2009 to conform to the presentation used for the fiscal year ended March 31, 2010.