HONDA MOTOR CO., LTD. REPORTS CONSOLIDATED FINANCIAL RESULTS FOR

Text Preview:
April 28, 2011
HONDA MOTOR CO., LTD. REPORTS
CONSOLIDATED FINANCIAL RESULTS
FOR THE FISCAL FOURTH QUARTER AND
THE FISCAL YEAR ENDED MARCH 31, 2011



Tokyo, April 28, 2011--- Honda Motor Co., Ltd. today announced its consolidated
financial results for the fiscal fourth quarter and the fiscal year ended March 31, 2011.


Fourth Quarter Results

Honda's consolidated net income attributable to Honda Motor Co., Ltd. for the fiscal
fourth quarter ended March 31, 2011 totaled JPY 44.5 billion (USD 536 million), a
decrease of 38.3% from the same period last year. Basic net income attributable to
Honda Motor Co., Ltd. per common share for the quarter amounted to JPY 24.72 (USD
0.30), a decrease of JPY 15.06 from JPY 39.78 for the corresponding period last year.
One Honda American Depository Share represents one common share.


Consolidated net sales and other operating revenue (herein referred to as "revenue") for
the quarter amounted to JPY 2,213.0 billion (USD 26,616 million), a decrease of 2.9%
from the same period last year, due primarily to the unfavorable currency translation
effects, despite increased revenue in the motorcycle business together with revenue related
to licensing agreements. Honda estimates that if calculated at the same exchange rate as
the corresponding period last year, revenue for the quarter would have increased by
approximately 3.3%.


Consolidated operating income for the quarter amounted to JPY 46.2 billion (USD 556
million), a decrease of 51.9% from the same period last year, due primarily to increased
SG&A expenses, unfavorable foreign currency effects, and impact of the Great East Japan
Earthquake occurred on March 11, 2011 (the "Earthquake") despite continuing cost
reduction efforts, decreased R&D expenses, increased sales volume and model mix and
operating income related to licensing agreements.


Consolidated income before income taxes and equity in income of affiliates for the quarter
totaled JPY 76.6 billion (USD 921 million), a decrease of 18.1% from the same period last
year, despite non-operating income related to dissolution of the joint venture.


Equity in income of affiliates amounted to JPY 25.0 billion (USD 301 million) for the

                                           - 1 -
quarter, an increase of 4.7 % from the corresponding period last year.


*   For detailed information of the Earthquake, please refer to [11] Other, 3. Impact on the Company's
consolidated financial position or results of operations of the Great East Japan Earthquake occurred on
March 11, 2011 below.


** For detailed information of the dissolution and licensing agreements, please refer to [11] Other, 2.
Dissolution of the joint venture below.


Business Segment

With respect to Honda's sales for the fiscal fourth quarter by business segment,
motorcycle unit sales totaled 2,934 thousand units, an increase of 12.8% from the same
period last year* due mainly to increased unit sales in Asia and Other regions including
South America. Revenue from sales to external customers increased 5.4%, to JPY 353.1
billion (USD 4,247 million), from the same period last year, due mainly to increased unit
sales and revenue related to licensing agreements, despite the unfavorable currency
translation effects. Operating income totaled to JPY 48.1 billion (USD 579 million), an
increase of 71.8% from the same period last year, due primarily to increased unit sales and
model mix and operating income related to licensing agreements, despite increased SG&A
expenses and unfavorable foreign currency effects.
*Of the net sales of Honda-brand motorcycle products that are manufactured and sold by overseas affiliates
accounted for under the equity method, those with respect to which parts for manufacturing were not
supplied from Honda or its subsidiaries are not included in net sales and other operating revenue, in
conformity with U.S. generally accepted accounting principles. Accordingly, these unit sales are not
included in the financial results. Sales of such products amounted to approximately 1,810 thousand units
for the period.
** For detailed information of licensing agreements, please refer to [11] Other, 2. Dissolution of the joint
venture below.


Honda's automobile unit sales totaled 860 thousand units**, a decrease of 1.6% from the
same period last year due mainly to decreased unit sales in Japan, despite increased unit
sales in North America. Revenue from sales to external customers decreased 4.4%, to
JPY 1,645.3 billion (USD 19,788 million), from the same period last year, due mainly to
unfavorable currency translation effects. Honda reported an operating loss of JPY 39.1
billion (USD 471 million), a deterioration of JPY 63.1 billion from the same period last
year, due primarily to increased SG&A expenses, unfavorable foreign currency effects and
the impact of the Earthquake, despite continuing cost reduction efforts and decreased
R&D expenses.

**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

                                                    - 2 -
unit sales.


Revenue from customers in the financial services business decreased 6.8%, to JPY 134.5
billion (USD 1,618 million) from the same period last year. Operating income decreased
16.1% to JPY 39.6 billion (USD 476 million) from the same period last year due mainly to
the unfavorable foreign currency effects, despite the decreased allowance for losses on
credit and lease residual values.


Honda's power product unit sales totaled 1,746 thousand units, an increase of 7.1% from
the same period last year due to an increase of unit sales in all the regions. Revenue from
sales to external customers in power product and other businesses increased 1.8%, to JPY
80.0 billion (USD 963 million), from the same period last year, due mainly to increased
unit sales in power products, despite unfavorable currency translation effects. Honda
reported an operating loss of JPY 2.3 billion (USD 28 million), an improvement of JPY
0.7 billion from the same period last year, primarily due to continuing cost reduction
efforts and increased sales volume and model mix of power products, despite increased
SG&A expenses.




                                           - 3 -
Geographical Information

With respect to Honda's sales for the fiscal fourth quarter by geographic area, in Japan,
revenue from domestic and exports sales amounted to JPY 893.8 billion (USD 10,750
million), a decrease of 0.1% from the same period last year, due mainly to decreased
revenue in the automobile business, despite revenue related to licensing agreements.
Honda reported an operating loss of JPY 21.8 billion (USD 262 million), a deterioration of
JPY 13.0 billion from the same period last year, due primarily to decreased sales volume
and model mix, increased SG&A expenses, unfavorable foreign currency effects and the
impact of the Earthquake, despite continuing cost reduction efforts, decreased R&D
expenses and operating income related to licensing agreements.


In North America, revenue decreased by 2.7%, to JPY 976.6 billion (USD 11,745 million),
from the same period last year due mainly to unfavorable currency translation effects.
Operating income totaled JPY 24.5 billion (USD 296 million), a decrease of 65.3% from
the corresponding period last year, due primarily to increased SG&A expenses and the
unfavorable foreign currency effects, despite increased sales volume and model mix.


In Europe, revenue decreased by 5.2%, to JPY 197.3 billion (USD 2,374 million), from
the same period last year, due primarily to unfavorable currency translation effects.
Honda reported an operating loss of JPY 1.7 billion (USD 21 million), an improvement of
JPY 5.8 billion from the same period last year, primarily due to continuing cost reduction
efforts and decreased SG&A expenses, despite the unfavorable foreign currency effects.


In Asia, revenue increased by 10.1%, to JPY 472.4 billion (USD 5,681 million), from the
same period last year, due mainly to increased revenue in the automobile business and the
motorcycle business, despite the unfavorable currency translation effects. Operating
income increased by 6.8%, to JPY 32.1 billion (USD 386 million), from the corresponding
period last year, due mainly to increased sales volume and mix and decrease in fixed costs
as volume of production increase, despite increased SG&A expenses and unfavorable
foreign currency effects.
In Asia, in addition to subsidiaries, many affiliates accounted for under the equity method manufacture and
sell Honda-brand products. Operating income does not include income from these affiliates. Income
from these affiliates is recorded as equity in income of affiliates and reflected in net income. Accounting
terms of some of the affiliates differ from the Company's.


In Other regions including South America, the Middle East, Africa and Oceania, revenue
increased by 5.2%, to JPY 264.3 billion (USD 3,179 billion) from the same period last
year, due mainly to increased revenue in the motorcycle business and the automobile
business, despite the unfavorable foreign currency effects. Operating income totaled

                                                   - 4 -
JPY 13.1 billion (USD 158 million), a decrease of 30.4% from the same period last year,
primarily due to increased SG&A expenses and the unfavorable foreign currency effects,
despite increased sales volume and model mix.


United States dollar amounts have been translated from yen solely for the convenience of the reader at the
rate of JPY 83.15=U.S.$1, the mean of the telegraphic transfer selling exchange rate and the telegraphic
transfer buying exchange rate prevailing on the Tokyo foreign exchange market on March 31, 2011.




                                                   - 5 -
Download Link:
Share Link: Forum Link:

More on Business

  • Picture: Gr 10 Maths Literacy - Paper 1

    Gr 10 Maths Literacy – Paper 1

    File Size: 249.96 KB, Pages: 10, Views: 1,434,856 views

    GRADE 10 EXEMPLAR EXAMINATION NOVEMBER 2006 MATHEMATICS LITERACY PAPER 1 Minimum time: 1 hours Maximum time: 2 hours 75 marks PLEASE READ THE FOLLOWING CAREFULLY 1. This paper consists of: 5 questions an answer sheet with grid paper for question 4 (d). 2. Answer all …
  • Picture: Improving cash flow using credit management - CIMA

    Improving cash flow using credit management – CIMA

    File Size: 374.27 KB, Pages: 28, Views: 1,347,330 views

    Improving cash flow using credit management The outline case sponsored by Improving cash flow using credit management sponsored by Albany Software focuses on developing award-winning software to transform financial processes and is the market leader in electronic payment solutions. Albany makes financial transfers and subsequent …
  • Picture: MATERIAL SAFETY DATA SHEET - compressorparts.com

    MATERIAL SAFETY DATA SHEET – compressorparts.com

    File Size: 311.77 KB, Pages: 8, Views: 549,732 views

    Product Name: MOBIL RARUS SHC 1025 Revision Date: 16Feb2007 Page 1 of 8 _____________________________________________________________________________________________________________________ _ MATERIAL SAFETY DATA SHEET SECTION 1 PRODUCT AND COMPANY IDENTIFICATION PRODUCT Product Name: MOBIL RARUS SHC 1025 Product Description: Synthetic Base Stocks and Additives Product Code: 606343-00, 973764 Intended Use: …
  • Picture: Onan RV Generator Troubleshooting Guide - Flight Systems, Inc.

    Onan RV Generator Troubleshooting Guide – Flight Systems, Inc.

    File Size: 2,729.64 KB, Pages: 18, Views: 37,929 views

    RV GENERATOR TROUBLESHOOTING GUIDE A Service of FLIGHT SYSTEMS 207 Hempt Road Mechanicsburg, PA 17050 Ph: 717 590 7330 Fax: 717 590 7327 www.flightsystems.com CONTENTS RV Generator Troubleshooting Overview 1 RV Generator FAQs 5 Onan RV Generator Charts: Applications Chart 8 Test Information for Troubleshooting …
  • Picture: Interpretive Guide for the Achievement Levels Report (2003

    Interpretive Guide for the Achievement Levels Report (2003

    File Size: 624.72 KB, Pages: 19, Views: 39,049 views

    Interpretive Guide for the Achievement Levels Report (2003 Revision) ITBS/ITED Testing Program The purpose of this Interpretive Guide is to provide information to individuals who will use the Achievement Levels Report for monitoring the achievement of student grade groups, both at the building level and …

Leave a Reply

Your email address will not be published. Required fields are marked *