Honda Motor Company Ltd. on October 29 announced its consolidated financial results for the fiscal second quarter and the fiscal first half ended September 30, 2010.
Consolidated Financial Summary:
Despite the unfavorable currency effects due to the appreciation of the Japanese yen, consolidated operating income for both the fiscal second quarter (July 1, 2010 through September 30, 2010) and the fiscal first half (April 1, 2010 through September 30, 2010) increased compared to the same period last year, primarily due to increased profit in automobile business in Japan, North America and Asia as well as motorcycle business in Asia. Equity in income of affiliates including profit of joint ventures in China also increased compared to the same period last year.
Honda made an upward revision to the forecast for consolidated operating income for the FY11 (a fiscal year ending March 31, 2011) from the previous 450 billion yen to 500 billion yen. This upward revision was based on the forecast for an increase in profit due to the expansion of motorcycle business in Asia, improved model mix in North America, cost reduction, and increased profit from financial business, offsetting unfavorable effects of the revised average currency exchange rate assumption for the fiscal second half to 80 yen to the U.S. dollar. The forecast for fiscal net income(*1) was also revised upward from the previous 455 billion yen to 500 billion yen due to the forecasted increase in equity in income of affiliates mainly in Japan and Asia in addition to an increase in operating income.
| 2nd quarter ended Sep, 30, 2009 | 2nd quarter ended Sep. 30, 2010 | Difference | Fiscal first half ended Sep. 30, 2009 | Fiscal first half ended Sep. 30, 2010 | Difference | |
| Consolidated Unit Sales (million units) | ||||||
| Motorcycles(*2) | 2.407 | 2.729 | + 0.322 | 4.659 | 5.616 | +0.957 |
| Automobiles(*3) | 0.838 | 0.898 | + 0.060 | 1.604 | 1.797 | +0.193 |
| Power Products(*4) | 0.943 | 1.166 | + 0.223 | 2.115 | 2.606 | +0.491 |
| Financial Results (billion yen) | ||||||
| Net sales and other operating revenue | 2,056.6 | 2,251.9 | +195.2 | 4,058.8 | 4,613.3 | +554.5 |
| Operating income | 65.5 | 163.4 | +97.9 | 90.7 | 397.9 | +307.2 |
| Income before income taxes | 66.1 | 166.2 | +100.0 | 71.5 | 422.3 | +350.7 |
| Equity in income of affiliates | 22.3 | 35.6 | +13.2 | 36.5 | 71.2 | +34.7 |
| Net income(*1) | 54.0 | 135.9 | +81.8 | 61.5 | 408.4 | +346.8 |
| Honda’s Average Rates (Yen) | ||||||
| USD = | 94 | 86 |
Yen up by 8 yen |
95 | 89 |
Yen up by 6 yen |
| EUR = | 134 | 111 |
Yen up by 23 yen |
133 | 115 |
Yen up by 18 yen |
| FY 10 results | FY11 forecasts announced on Jul. 30, 2010 |
FY11 forecasts revised on Oct. 29, 2010 |
Difference from FY10 | Difference from forecasts announced on Jul 30, 2010 | |
| Consolidated Unit Sales (million units) | |||||
| Motorcycles(*2) | 9.639 | 10.820 | 11.490 | + 1.851 | +0.670 |
| Automobiles(*3) | 3.392 | 3.640 | 3.615 | + 0.223 | -0.025 |
| Power Products(*4) | 4.744 | 5.545 | 5.565 | + 0.821 | +0.020 |
| Financial Results (billion yen) | |||||
| Net sales and other operating revenue | 8,579.1 | 9,100.0 | 9,000.0 | +420.8 | -100.0 |
| Operating income | 363.7 | 450.0 | 500.0 | +136.2 | +50.0 |
| Income before income taxes | 336.1 | 470.0 | 535.0 | +198.8 | +65.0 |
| Equity in income of affiliates | 93.2 | 98.0 | 117.0 | +23.7 | +19.0 |
| Net income(*1) | 268.4 | 455.0 | 500.0 | +231.6 | +45.0 |
| Honda’s Average Rates (Yen) | |||||
| USD = | 93 | 87 | 84 |
Yen up by 9 yen |
Yen up by 3 yen |
| EUR = | 130 | 112 | 113 |
Yen up by 17 yen |
Yen up by 1 yen |
| (*1) |
Net income attributable to Honda Motor Co., Ltd. based on U.S. generally accepted accounting principles. |
| (*2) |
Unit sales of approximately 1.95 million units for the current fiscal 2nd quarter, 3.73 million units for the current fiscal first half and approximately 7.12 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. |
| (*3) |
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. |
| (*4) | Unit sales of power products 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 products for the three months and the fiscal first half ended September 30, 2009 to conform to the presentation used for the fiscal year ended March 31, 2010. |