TOKYO, Japan, January 30, 2008 -- Honda Motor Co., Ltd. announced that it achieved an eighth consecutive all-time record for consolidated net sales and other operating revenue (herein referred to as "revenue") for the fiscal third quarter due to increased sales revenue in its motorcycle, automobile and financial services businesses. Consolidated operating income also increased to achieve a third consecutive all-time record for the fiscal third quarter, due to increased profit from higher revenue and cost reduction efforts, despite soaring raw materials costs and an increase in depreciation cost, and research and development (R&D) expenses. Honda also achieved all-time record results for the fiscal third quarter for income before income taxes, equity in income of affiliates, net income, and basic net income per common share.
At the board of directors meeting held today, January 30, 200 8, Honda resolved to pay 22 yen per share for the fiscal third quarter dividend with the dividend date of record of December 31, 2007. The year-end dividend is planned to be 22 yen. With the fiscal first quarter dividend of 20 yen and the fiscal second quarter dividend of 22 yen each, the total dividend to be paid for the entire fiscal year is expected to be 86 yen per share.
Results for the Fiscal 3rd Quarter Ended December 31, 2007
(*record high for the fiscal third quarter)
Yen (billions)
| 3rd Quarter ended Dec. 31, 2006 |
3rd Quarter ended Dec. 31, 2007 |
Difference (% changed) |
|
| Net sales and other operating revenue |
2,768.6 | 3,044.8* | + 276.1 (+ 10.0%) |
| Operating income | 205.1 | 276.2* | + 71.1 (+ 34.7%) |
| Income before Income taxes(*1) |
198.7 | 260.7* | + 61.9 (+ 31.2%) |
| Equity in income of affiliates | 25.8 | 31.3* | + 5.4 (+ 21.3%) |
| Net Income | 144.8 | 200.0* | + 55.1 (+ 38.1%) |
| Basic net income per common share |
JPY 79.45 | JPY 110.25* | + JPY 30.80 |
(Honda’s average rates for this fiscal third quarter: JPY113= U.S. dollar 1 / JPY164= Euro1)
- *1Income before income taxes for the previous fiscal third quarter ended December 31, 2006 was adjusted to match the method used for the current fiscal third quarter.
- Details of consolidated unit sales. (The total includes fully finished products made by Honda and its subsidiaries as well as unit sales of fully finished products and parts for local production by affiliates accounted for under the equity method.)
- Motorcycles: 2.366 million units (-14.4%); Though sales increased in some regions such as South America, consolidated unit sales decreased due to lower sales of production parts for overseas affiliates mainly in Asia which are accounted for under the equity method. (Unit sales of approximately 1.16 million units of Honda-brand motorcycle products are not included in the total listed above, in conformity with U.S. generally accepted accounting principles, because they are manufactured and sold by overseas affiliates accounted for under the equity method, but do not use any parts supplied by Honda and its consolidated subsidiaries.)
- Automobiles: 0.991 million units (+8.3%); the increase was due to increased sales in markets outside of Japan, especially in North America, Europe and Asia.
- Power Products: 1.178 million units (-14.8%); the decrease was due mainly to decreased sales in North America.
- Consolidated revenue increased in motorcycle, automobile and financial services business areas and totaled JPY 3,044.8 billion (+10.0%), realizing an all-time record for the fiscal third quarter for the eighth consecutive year.
- Consolidated operating income increased to achieve a third consecutive all-time record for the fiscal third quarter and totaled JPY 276.2 billion (+34.7%), due to increased profit from higher revenue, cost reduction efforts, which offset soaring raw materials costs and an increase in depreciation cost, and R&D expenses.
- Consolidated income before income taxes totaled JPY 260.7 billion (+31.2%), increasing in the fiscal third quarter for the second consecutive year and setting an all-time record.
- Equity in income of affiliates totaled JPY 31.3 billion (+21.3%), increasing in the fiscal third quarter for the first time in two years due mainly to the increased income of affiliates in Asia.
- Consolidated Net income totaled JPY 200.0 billion (+38.1%), increasing in the fiscal third quarter for the second consecutive year and setting an all-time record.
Results for the first nine months of the current fiscal year (April to December 2007) Consolidated revenue for the first nine months of the current fiscal year (April to December 2007) totaled JPY 8,947.2 billion (+11.9%), a seventh consecutive all-time record. Consolidated operating income for the period was JPY 784.2 billion (+30.4%), consolidated income before income taxes was JPY 748.9 billion (+35.2%), equity in income of affiliates totaled JPY 94.5 billion (+13.3%), and consolidated net income totaled JPY 574.6 billion (+38.1%).
Forecast for the Fiscal Year Ending March 31, 2008
- Honda is planning for unit sales totals of 9.23 million motorcycles, 3.90 million automobiles, and 6.035 million power products. (Unit sales of approximately 4.55 million units of Honda-brand motorcycle products are not included in this total, in conformity with U.S. generally accepted accounting principles, because they are manufactured and sold by overseas affiliates accounted for under the equity method, but do not use any parts supplied by Honda and its consolidated subsidiaries.)
- Honda will conduct its business operations based on the goals described in the following chart with assumption of the average currency exchange rate of JPY 114 = U.S. dollar 1 and JPY 161 = Euro 1 for the entire year (JPY 105 = U.S. dollar 1 and JPY 155 = Euro 1 for the fiscal fourth quarter).
Yen (billions)
| Year ended March 31, 2007 |
Forecast for year ending March 31, 2008 |
Difference (% change) |
Reference: Previous forecast made on October 25, 2007 |
|
| Net sales and other operating revenue |
11,087.1 | 12,150.0 | + 1,062.8 (+ 9.6%) | 12,300.0 |
| Operating income | 851.8 | 920.0 | + 68.1 (+ 8.0%) | 880.0 |
| Income before Income taxes |
792.8 | 915.0 | + 122.1 (+ 15.4%) | 870.0 |
| Equity in income of affiliates |
103.4 | 107.0 | + 3.5 (+ 3.5%) | 98.0 |
| Net Income | 592.3 | 690.0 | + 97.6 (+ 16.5%) | 640.0 |