Honda Motor Co., Ltd. announced its consolidated financial results for the fiscal first quarter ended June 30, 2010.
Consolidated Financial Summary
Results for Fiscal 1st Quarter (3 months ended June 30, 2010)
Consolidated net sales and other operating revenue for the fiscal first quarter ended June 30, 2010 amounted to JPY 2,361.4 billion, an increase of 17.9% compared to the same period last year, primarily due to increased revenue in the automobile business, offsetting unfavorable currency translation effects.
Consolidated operating income amounted to JPY 234.4 billion, an increase of 831.7% from the same period last year, due mainly to the positive impact of increased revenue and model mix, reduction in vehicle costs as a result of increased production and continuing cost reduction efforts, offsetting increased R&D expenses and the unfavorable impact of currency effects.
Consolidated income before income taxes amounted to JPY 256.1 billion, an increase of JPY 250.6 billion from the same period last year, and consolidated net income attributable to Honda Motor Co., Ltd. amounted to JPY 272.4 billion, an increase of JPY 264.9 billion compared to the same period last year.
|
Yen (billions) |
1st quarter ended June 30, 2009 |
1st quarter ended June 30, 2010 |
Difference (% change) |
|
|
Net sales and other operating revenue |
2,002.2 |
2,361.4 |
+359.2 |
(+ 17.9) |
|
Operating income |
25.1 |
234.4 |
+209.2 |
(+ 831.7) |
|
Income before income taxes |
5.4 |
256.1 |
+250.6 |
( – ) |
|
Equity in income of affiliates |
14.2 |
35.6 |
+ 21.4 |
(+ 150.6) |
|
Net income attributable to Honda Motor Co., Ltd. |
7.5 |
272.4 |
+264.9 |
( – ) |
Exchange rate:
Honda’s average rates for this fiscal 1st quarter: JPY 92=USD 1 / JPY 118=Euro 1
Honda’s average rates for fiscal 1st quarter of the previous year: JPY 97=USD 1 / JPY 132=Euro 1
Consolidated Unit Sales
(Consolidated unit sales are the total of sales of completed products of Honda and its consolidated subsidiaries, and sales of parts for local production to Honda’s affiliates accounted for under the equity method.)
|
(million units) |
1st quarter ended June 30, 2009 |
1st quarter ended June 30, 2010 |
Difference (% change) |
Major factors of increase/decrease |
|
Motorcycles(*1) |
2.252 |
2.887 |
(+28.2) |
Increased sales mainly in Asia and the Other region including South America |
|
Automobiles(*2) |
0.766 |
0.899 |
(+17.4) |
Increased sales mainly in Asia, North America, and Japan |
|
Power Products(*3) |
1.172 |
1.440 |
(+22.9) |
Increased sales in all regions |
Forecasts for the Fiscal Year ending March 31, 2011
Honda’s financial forecasts for the fiscal year ending March 31, 2011 are described below, with assumption of the average currency exchange rates of JPY 87 = USD 1 (from 2nd to 4th quarter: JPY 85 = USD 1) and JPY 112 = Euro 1 (from 2nd to 4th quarter: JPY 110 = Euro 1).
|
Yen (billions) |
Results for fiscal year ended Mar. 31, 2010 |
Forecasts for fiscal year ending Mar. 31, 2011 |
Difference (% change) |
|
|
Net sales and other operating revenue |
8,579.1 |
9,100.0 |
+ 520.8 |
(+ 6.1) |
|
Operating income |
363.7 |
450.0 |
+ 86.2 |
(+23.7) |
|
Income before income taxes |
336.1 |
470.0 |
+ 133.8 |
(+39.8) |
|
Equity in income of affiliates |
93.2 |
98.0 |
+ 4.7 |
(+ 5.1) |
|
Net income attributable to Honda Motor Co., Ltd. |
268.4 |
455.0 |
+ 186.6 |
(+69.5) |
Exchange rate:
Honda’s average rates for the fiscal year ended March 31, 2010: JPY 93=USD 1 / JPY 130=Euro 1
Consolidated Unit Sales Forecasts
|
(million units) |
Fiscal year ended Mar. 31, 2010 |
Fiscal year ending Mar. 31, 2011 |
Difference |
(% change) |
|
Motorcycles(*1) |
9.639 |
10.820 |
+1.181 |
(+12.3) |
|
Automobiles(*2) |
3.392 |
3.640 |
+0.248 |
(+ 7.3) |
|
Power Products |
4.744 |
5.545 |
+0.801 |
(+16.9) |
At the board of directors meeting held today, Honda resolved the following:
(A) The Company makes the quarterly dividend for the fiscal first quarter JPY 12 per share of the common stock with record of June 30, 2010. The total annual dividend per share of common stock to be paid for the fiscal year is expected to be JPY 48.
(B) The Company will acquire its own shares for the purpose of enhancing its capital efficiency and enabling greater flexibility in its capital policies.
Details of the acquisition
(1) Type of shares and maximum number of shares to be acquired:
Shares of Common Stock 12,000 thousand shares
(2) Maximum amount of acquisition:
JPY 25 billion
(3) Period of acquisition:
Starting on August 3, 2010 and ending on September 15, 2010
(C) The Company will retire its treasury stock.
(1) Type of shares and number of shares to be retired:
Shares of Common Stock 23,400 thousand shares
(2) Total number of the shares outstanding after retirement:
1,811,428 thousand shares
(3) Scheduled date of retirement:
August 6, 2010
Reference: Changes in forecasts for the fiscal year ending March 31, 2011 compared to the previous forecasts announced on April 28, 2010
|
Yen (billions) |
Forecasts announced on April 28, 2010 |
Forecasts revised on July 30, 2010 |
Difference (%change) |
|
|
Net sales and other operating revenue |
9,340.0 |
9,100.0 |
-240.0 |
(- 2.6) |
|
Operating income |
400.0 |
450.0 |
+ 50.0 |
(+12.5) |
|
Income before income taxes |
410.0 |
470.0 |
+ 60.0 |
(+14.6) |
|
Equity in income of affiliates |
95.0 |
98.0 |
+ 3.0 |
(+ 3.2) |
|
Net income attributable to Honda Motor Co., Ltd. |
340.0 |
455.0 |
+115.0 |
(+33.8) |
Exchange rate:
Honda’s average rates used for the revised forecasts: JPY 87=USD1 / JPY112=Euro1
Honda’s average rates used for the previous forecasts: JPY 90=USD1 / JPY120=Euro1
|
(million units) |
Forecasts announced on April 28, 2010 |
Forecasts revised on July 30, 2010 |
Difference(% change) |
|
|
Motorcycles |
10.375 |
10.820 |
+0.445 |
(+ 4.3) |
|
Automobiles |
3.615 |
3.640 |
+0.025 |
(+ 0.7) |
|
Power Products |
4.870 |
5.545 |
+0.675 |
(+13.9) |
(*1) Unit sales of approximately 1.78 million units for the current fiscal 1st quarter and approximately 7.34 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.
(*2) 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.
(The current fiscal 1st quarter: approximately 1,000 units, the fiscal year ending March 2011: approximately 4,000 units)
(*3) Unit sales of power product business 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 product business for three months ended June 30, 2009 to conform to the presentation used for three months ended June 30, 2010.
