TOKYO, Japan, April 28, 2011 - Honda Motor Co., Ltd. announced its consolidated financial results for the fiscal fourth quarter and the fiscal year ended March 31, 2011.
Despite the impacts of the Great East Japan Earthquake that occurred on March 11, 2011 and the unfavorable currency effects due to appreciation of the Japanese yen, consolidated operating income for the fiscal fourth quarter (January 1, 2011 through March 31, 2011) was 46.2 billion yen primarily due to the expansion of motorcycle and automobile businesses in emerging markets and the contribution of financial business in North America.
Consolidated operating income, income before income taxes, and equity in income of affiliates for the fiscal year 2011 (April 1, 2010 through March 31, 2011) increased considerably compared to the last fiscal year, primarily due to increased unit sales in motorcycle, automobile and power product businesses and continuing cost reduction efforts, offsetting the impacts of the Great East Japan Earthquake, the unfavorable currency effects due to Japanese yen appreciation, and increased R&D expenses. Net income*1 was 534.0 billion yen, which almost doubled from the last fiscal year.
Honda is currently unable to reasonably calculate forecasts for consolidated financial results for the fiscal year ending March 31, 2012, due to the impact of the Great East Japan Earthquake. Therefore, Honda will release the forecasts of the consolidated financial results for the fiscal year ending March 31, 2012 as soon as they become available.
On March 11, 2011, Japan experienced a large earthquake commonly referred to as the Great East Japan Earthquake, which caused damage to certain of Honda's property, plants and equipment and inventory, and the temporary suspension of production of its plants and research and development activities of the Company and its domestic consolidated subsidiaries. As a result, Honda and its domestic consolidated subsidiaries recognized approximately 45.7 billion yen of losses. Honda and its domestic consolidated subsidiaries did not recognize the costs of future restoration activities expected to be incurred in the next fiscal year in the current year consolidated financial statements.
(Reference) Unconsolidated financial statement includes extraordinary loss of approximately 73.7 billion yen that includes the cost of restoration and/or removal of damaged property and equipment.