Honda net sales and operating revenue declined 11.5% in past quarter

Honda Motor Company Ltd. on February 3 announced its consolidated financial results for the fiscal third quarter ended December 31, 2009.

Consolidated Financial Summary:
Results for Fiscal Third Quarter (three months ended December 31, 2009)
Consolidated net sales and other operating revenue for the fiscal third quarter ended December 31, 2009 amounted to JPY 2,240.7 billion, a decrease of 11.5 percent compared to the same period last year, primarily due to the unfavorable impact of currency translation and decreased sales in automobile business.

Consolidated operating income amounted to JPY 176.9 billion, an increase of 72.7% from the same period last year, due to decreased selling, general and administrative (SG&A) expenses and R&D expenses and continuing cost reduction efforts, which more than offset decreased profit from lower revenue and the unfavorable currency effects by the appreciation of the Japanese yen.

Consolidated income before income taxes amounted to JPY 171.0 billion, an increase of 97.1% from the same period last year, and net income attributable to Honda Motor Co., Ltd. amounted to JPY 134.6 billion, an increase of 565.1% compared to the same period last year.

 

Results for Fiscal Nine Months (nine-month period from April 1, 2009 through December 31, 2009)
Consolidated net sales and other operating revenue for the fiscal nine months amounted to JPY 6,299.6 billion, a decrease of 23.4% compared to the same period last year, primarily due to decreased sales in automobile business and the unfavorable impact of currency translation.

Consolidated operating income amounted to JPY 267.6 billion, a decrease of 42.0% compared to the same period last year, due to decreased profit from lower revenue, the unfavorable currency effects by the appreciation of the Japanese yen, and increased cost per unit due to decreased production, which more than offset decreased SG&A and R&D expenses and continuing cost reduction efforts.

Consolidated income before income taxes amounted to JPY 242.6 billion, a decrease of 47.3% from the same period last year, and net income attributable to Honda Motor Co., Ltd. amounted to JPY 196.2 billion, a decrease of 38.1% compared to the same period last year.

 

(*)
During the fiscal year ended March 31, 2009, a subsidiary of the Company changed its fiscal year-end from December 31 to March 31. As a result, the Company eliminated the previously existed three month difference between the reporting periods of the Company and the subsidiary in the consolidated financial statements. The elimination of the lag period which was adjusted in the three months ended March 31, 2009 represented a change in accounting principles and was reported by retrospective application. Honda adjusted its consolidated financial statements for the nine months ended December 31, 2008 to conform to the presentation used for the fiscal year ended March 31, 2009.

Unit sales of approximately 1.60 million units for the current fiscal 3rd quarter and 4.17 million units for the current fiscal nine months 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 the total motorcycle sales described above, in conformity with U.S. generally accepted accounting principles.

 

Consolidated Unit Sales Forecasts

Unit sales of approximately 5.72 million units 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 this total motorcycle sales described above, in conformity with U.S. generally accepted accounting principles.

At the board of directors meeting held today, Honda resolved that JPY 10 of the quarterly dividend per share of common stock to be paid with the record date of December 31, 2009. The Company plans to distribute year-end dividend of JPY 10 per share for the year ended March 31, 2010. As a result, total dividend is planned to be JPY 36 per share, an increase of JPY 4 per share from the previously expected annual dividend of JPY 32 per share.

<Reference: Changes in forecasts for the fiscal year ending March 31, 2010 compared to the previous forecasts announced on October 27, 2009>
 

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