- April 28, 2011
Summary of Consolidated Financial Results for the Fiscal 4th Quarter and the Fiscal Year ended March 31, 2011
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.
Consolidated Financial Summary:
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.
- Net income attributable to Honda Motor Co., Ltd. based on U.S. generally accepted accounting principles.
- Unit sales of approximately 1.81 million units for the current fiscal 4th quarter, approximately 7.29 million units for the current fiscal year ended 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 the total sales of the motorcycle segment or in the measure of unit sales, in conformity with U.S. generally accepted accounting principles.
- Certain sales of automobiles that are financed with residual value type auto loans by Honda's 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 the total sales of the automobile segment or in the measure of unit sales.
Impact of the Great East Japan Earthquake on Honda's consolidated financial position or results of operations
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.