TOKYO, July 25 /PRNewswire-FirstCall/ -- Honda Motor Co., Ltd. (NYSE: HMC)
today announced its consolidated financial results for the fiscal first
quarter ended June 30, 2008.
First Quarter Results
Honda's consolidated net income for the fiscal first quarter ended June
30, 2008 totaled JPY 179.6 billion (USD 1,688 million), an increase of 8.1%
from the same period in 2007. Net income set a record high for the fiscal
first quarter. Basic net income per common share for the quarter amounted to
JPY 98.98 (USD 0.93), an increase of JPY 7.6 from JPY 91.38 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 2,867.2 billion (USD 26,943
million), a decrease of 2.2% from the same period in 2007, resulting primarily
from currency translation effects. Honda estimates that if calculated at the
same exchange rate as the corresponding period in 2007, revenue for the
quarter would have increased by approximately 7.1%.
Consolidated operating income for the quarter totaled JPY 221.3 billion
(USD 2,080 million), approximately the same level compared to the same period
last year, due primarily to the positive impact of decreased sales incentives
in the automobile business in North America, increased profit attributable to
increased unit sales in the automobile business and continuing cost reduction
efforts despite the negative impact of currency effects caused by the
appreciation of the Japanese yen, increased SG&A expenses and increased raw
material costs.
Consolidated income before income taxes, minority interest and equity in
income of affiliates for the quarter totaled JPY 235.0 billion (USD 2,209
million), an increase of 7.7% from the same period in 2007. Income before
income taxes, minority interest and equity in income of affiliates set a
record high for the fiscal first quarter.
Equity in income of affiliates amounted to JPY 38.1 billion (USD 359
million) for the quarter, an increase of 3.2% from the corresponding period
last year. Equity in income of affiliates set a record high for the quarter.
Business Segment
With respect to Honda's sales for the fiscal first quarter by business
segment, motorcycle unit sales totaled 2,715 thousand units, an increase of
20.5% from the same period last year. Unit sales in Japan totaled 58 thousand
units, a decrease of 31.0% compared to the same period last year. Overseas
unit sales was 2,657 thousand units, an increase of 22.5% from the same period
in 2007, due mainly to increased unit sales in Asia and Brazil and an increase
in sales of motorcycle knocked-down parts for local production at Asian
affiliates accounted for under the equity method in Indonesia and India.
Revenue from external customers increased 6.7%, to JPY 393.0 billion (USD
3,693 million) from the same period last year, due mainly to increased revenue
in Asia and other regions. Operating income was JPY 31.1 billion (USD 293
million), the level of the same period last year, due mainly to increased
revenue, offsetting increased SG&A expenses and increased raw material costs.
Honda's automobile unit sales totaled 962 thousand units, an increase of
1.7% from the same period last year. In Japan, unit sales amounted to 128
thousand units, a decrease of 5.9% from the same period last year. Overseas
unit sales increased 3.0% to 834 thousand units from the corresponding period
last year, due mainly to increased unit sales in Asia and other regions
including Brazil and an increase in sales of automobile knocked-down parts for
local production at Chinese affiliates accounted for under the equity method,
more than offsetting a decrease of unit sales in Europe and North America.
Revenue from external customers decreased 4.3% to JPY 2,228.0 billion (USD
20,936 million) from the same period in 2007, due mainly to the negative
impact of currency translation effect, offsetting the positive impact of
increased overseas unit sales.
