Fiscal 2005 Results
In fiscal 2005, unit sales of power products rose 5.0%, to 5.3
million units, due mainly to increased sales of general-purpose
engines in North America. Net sales from power products and
other businesses, including sales between segments, edged up
0.3%, to ¥342.8 billion. Operating income soared 85.9%, to
¥19.3 billion, and the operating margin was 5.6%.
In Japan, unit sales of power products fell 9.4%, to 432,000
units, due largely to declines in sales of power generation equipment
and a decrease in sales of the GX series of general-purpose
engines supplied to pump manufacturers on an OEM*1 basis.
In North America, unit sales grew 6.4%, to 2,514,000 units,
due to solid sales of power generation equipment, as well as
strong sales of highly price-competitive, Thai-made GX general-purpose
engines for use in high-pressure cleaning equipment.
Unit sales in Europe climbed 3.8%, to 1,309,000 units,
bolstered by firm demand for Thai-made GX general-purpose
engines, as well as healthy sales of GC engines for use in lawn
mowers.
In Asia, unit sales jumped 15.0%, to 712,000 units. This was
due primarily to increased sales of GX engines reported by our
Thai subsidiary and higher sales of production components to
Jialing-Honda Motors, an equity-method affiliate in China.
In other regions, unit sales moved up 1.8%, to 333,000 units.
In Brazil, we reported increased sales of GX engines manufactured
in Brazil, which become more price-competitive as a result of
further cuts in procurement costs. In Australia, we posted higher
sales of the HRU series of push lawn mowers, boasting superb
fuel efficiency.
|
|
*1: Original equipment manufacturing (OEM)
OEM refers to products and components supplied for sale under a third-party brand.
|
 |
|
In July 2004, Honda rolled out the world’s first power generators
capable of simultaneous output of different voltages. Equipped
with sine-wave inverters, these were released as the EM45is and
EM55is in Japan and the EM5000is and EM7000is in North
America.
In September 2004, we launched the Honda-original, hybrid
HSS970i snowblower in Japan and Europe. The HSS970i features
a gasoline engine for removing snow and an electric motor for
travel motion. We also began domestic sales of the Salad FF500 mini-tiller, boasting improved performance and operating efficiency
thanks to a high-powered engine. The Salad series continues to
be well-received by Japanese customers.
In Japan, we launched the HRX537 push lawn mower,
combining myriad functions in a single unit and featuring excellent
economy and environmental performance, in February 2005. In
the United States, we unveiled the FG110 portable tiller, offering
improvements in fuel economy and lightness. Back in Japan, we
worked hard to promote our compact, home-use cogeneration
system*2, which greatly reduces environmental impact compared with conventional systems.
Outlook for Fiscal 2006
In fiscal 2006, we expect unit sales of power products to grow
9.2%, to 5.79 million units.
Domestically, we will target increased sales of the Salad
FF5000 mini-tiller, launched in September 2004. We will also
continue promoting our compact, home-use cogeneration system.
We will strive to further boost sales of power products in
North America, centering on the EU2000i inverter-equipped
mobile generator for camping and leisure use, in response to
emerging customer needs. In the United States, we will spearhead
new initiatives aimed at commercializing our home-use
cogeneration system.
In July 2005, Honda will release the iGX440, a next-generation,
general-purpose engine featuring enhanced user-friendliness,
superior environmental performance and reduced noise thanks
to adoption of electronic engine speed control*3 and other technologies.
Meanwhile, we will step up efforts to supply highly competitive,
Asian-made products, notably the GX series, to customers in each
region.
Through these initiatives, we are targeting further sales increases,
especially in North America and Asia.
|
|
*2: Compact, home-use cogeneration system
Honda has combined its original electromagnetic inverter technologies with the world’s
smallest(i) natural gas engine (GE160V) in an efficient layout to create a small, lightweight
generation unit. Due to its compactness, the unit can be installed in the home and
boasts an overall energy efficiency of 85%. It also emits approximately 30% less carbon
dioxide than conventional natural gas-powered generators or hot-water heating units
using natural gas.(ii)
i: A Honda development, the reciprocal gas engine
ii: Data from Honda test results. Data compares electric power from natural gas-powered
generation with hot-water heating units that use natural gas (as of April 2005).
*3: Electronic speed control
With Honda’s original electronic engine speed control technology, the electronic control
units continuously monitors throttle opening and engine speed, electronically regulating the
throttle to maintain a constant engine speed, even under changing engine load conditions.
|
|
