TOKYO, Japan, April 27, 2012 - Honda Motor Co., Ltd. announced its consolidated financial results for the fiscal fourth quarter and the fiscal year ended March 31, 2012.
Consolidated Financial Summary:
Despite the unfavorable currency effects due to the appreciation of the Japanese yen and increase in R&D expenses, consolidated operating income for the fiscal fourth quarter (January 1, 2012 through March 31, 2012) amounted to 111.9 billion yen, approximately 2.4 times greater than the same period of last year, primarily due to motorcycle business, which marked record-high unit sales for any quarter, increased revenue in automobile business mainly in Japan and North America and decreased selling, general and administrative (SG&A) expenses.
Despite the increased revenue in motorcycle business, consolidated operating income for the fiscal year (April 1, 2011 through March 31, 2012) declined by 59.4% compared to the previous fiscal year and amounted to 231.3 billion yen, primarily due to the impact of decreased automobile production due to the Great East Japan Earthquake and the flooding in Thailand, increased R&D expenses and the unfavorable currency effects due to the appreciation of the Japanese yen. Consolidated net income attributable to Honda Motor Co., Ltd. for the fiscal year amounted 211.4 billion yen, 60.4% decrease from the previous fiscal year.
Honda plans for year-end cash dividends of JPY 15 per share. Together with the quarterly cash dividends of JPY 15 for the first, second and third fiscal quarters, the total cash dividends to be paid for the fiscal year ended March 31, 2012 are planned to be JPY 60 per share, which is an increase of JPY 6 per share from the annual dividends paid for the fiscal year ended March 31, 2011. The year-end dividends are matters to be resolved at the general shareholders' meeting.
Consolidated Financial Results for the Fiscal 4th Quarter
| 4th quarter ended Mar. 31, 2011 |
4th quarter ended Mar. 31, 2012 |
Difference | ||
| Unit Sales (million units) |
Motorcycles*1 | 2.934 | 3.456 | + 0.522 |
| Automobiles*2 | 0.860 | 0.988 | + 0.128 | |
| Power Products | 1.746 | 2.010 | + 0.264 | |
| Financial Results (billion yen) |
Net sales and other operating revenue | 2,213.0 | 2,405.0 | + 191.9 |
| Operating income | 46.2 | 111.9 | + 65.7 | |
| Income before income taxes |
76.6 | 93.0 | + 16.4 | |
| Equity in income of affiliates |
25.0 | 33.2 | + 8.2 | |
| Net income attributable to Honda Motor Co., Ltd. | 44.5 | 71.5 | + 27.0 | |
| Honda's Average Rates (Yen) |
USD = | 82 | 80 | Up by 2 yen |
| EUR = | 113 | 104 | Up by 9 yen | |
Consolidated Financial Results for the Fiscal Year ended March 31, 2012 (FY12)
| FY11 results |
FY12 forecasts announced on Jan. 31, 2012 |
FY12 results |
Difference from FY11 |
Difference from forecasts announced on Jan. 31, 2012 |
||
| Unit Sales (million units) |
Motorcycles*1 | 11.445 | 12.660 | 12.559 | + 1.114 | - 0.101 |
| Automobiles*2 | 3.512 | 3.150 | 3.137 | - 0.375 | - 0.013 | |
| Power Products | 5.509 | 5.850 | 5.819 | + 0.310 | - 0.031 | |
| Financial Results/ Forecasts (billion yen) |
Net sales and other operating revenue | 8,936.8 | 7,850.0 | 7,948.0 | - 988.7 | + 98.0 |
| Operating income | 569.7 | 200.0 | 231.3 | - 338.4 | + 31.3 | |
| Income before income taxes |
630.5 | 250.0 | 257.4 | - 373.1 | + 7.4 | |
| Equity in income of affiliates |
139.7 | 95.0 | 100.4 | - 39.3 | + 5.4 | |
| Net income attributable to Honda Motor Co., Ltd. | 534.0 | 215.0 | 211.4 | - 322.6 | - 3.5 | |
| Honda's Average Rates (Yen) |
USD = | 86 | 78 | 79 | Up by 7 yen |
Down by 1 yen |
| EUR = | 114 | 106 | 108 | Up by 6 yen |
Down by 2 yen |
|
- *1Unit sales of approximately 0.81 million units for the current fiscal 4th quarter, and approximately 2.94 million units for the current fiscal year ended March 31, 2012 of Honda-brand motorcycle products are not included in the total sales of the motorcycle segment or in the measure of unit sales, 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 from Honda and its consolidated subsidiaries.
- *2Certain sales of automobiles that are financed with residual value type auto loans by Honda's Japanese 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 the total sales of the automobile segment or in the measure of unit sales.
Forecasts for the Fiscal Year ending March 31, 2013 (FY13)
Honda's financial forecasts for the fiscal year ending March 31, 2013 are described below, with assumption of the average currency exchange rates of JPY 80 = USD 1 and JPY 105 = Euro 1 for the fiscal year.
| (million units) | FY12 Results <Reference> |
FY13 forecasts |
Difference | |
| Honda Group Unit Sales*3 |
Motorcycles | 15.061 | 16.600 | + 1.539 |
| Automobiles*4 | 3.108 | 4.300 | + 1.192 | |
| Power Products | 5.819 | 6.300 | + 0.481 | |
| Consolidated Unit Sales*3 |
Motorcycles | 8.650 | 9.900 | + 1.250 |
| Automobiles*4 | 2.482 | 3.540 | + 1.058 | |
| Power Products | 5.819 | 6.300 | + 0.481 | |
| FY12 results |
FY13 forecasts |
Difference | ||
| Financial Results/ Forecasts (billion yen) |
Net sales and other operating revenue | 7,948.0 | 10,300.0 | + 2,351.9 |
| Operating income | 231.3 | 620.0 | + 388.6 | |
| Income before income taxes |
257.4 | 635.0 | + 377.5 | |
| Equity in income of affiliates |
100.4 | 120.0 | + 19.5 | |
| Net income attributable to Honda Motor Co., Ltd. | 211.4 | 470.0 | + 258.5 | |
| Honda's Average Rate (Yen) |
USD = | 79 | 80 | Down by 1 yen |
| EUR = | 108 | 105 | Up by 3 yen |
|
Concerning automobile unit sales of Honda group, Honda plans to set a record-high for annual unit sales of 4.3 million units, with plans for a significant increase in sales mainly in North America and Asia.
The total cash dividends for the fiscal year ending March 31, 2013 are planned to be JPY 76 per share, an increase of JPY 16 from the annual dividends to be paid for the fiscal year ended March 31, 2012.
Honda will be making changes in disclosure regarding “unit sales” starting with the new fiscal year ending March 31, 2013. For details, please refer to footnote *3.
- *3Changes in disclosure regarding "unit sales" starting with the new fiscal year ending March 31, 2013From fiscal year ending March 31, 2013
(FY13), Honda discloses the total of unit sales of completed products of Honda, its consolidated subsidiaries and its affiliates accounted for under the equity method as "Honda Group Unit Sales".
Until the fiscal year ended March 31, 2012 (FY12), Honda has disclosed as "Unit Sales" the total of unit sales of completed products of Honda and its consolidated subsidiaries, and sales of parts for local production at Honda's affiliates accounted for under the equity method (FY12 results: Motorcycle business: 12.559 million units/ Automobile business: 3.137 million units). From FY13, Honda discloses "Consolidated Unit sales" along with the "Honda Group Unit Sales" in place of the current "Unit Sales". "Consolidated Unit Sales" is the total of unit sales of completed products of Honda and its consolidated subsidiaries, not including parts for local production at Honda's affiliates accounted for under the equity method (FY12 results: Motorcycle business: 3.909 million units/ Automobile business: 0.655 million units). - *4Certain sales of automobiles that are financed with residual value type auto loans by our Japanese finance subsidiaries are accounted for as operating leases in conformity with U.S. generally accepted accounting principles and are not included in consolidated net sales to the external customers in our automobile segment. As a result, they are not included in Consolidated Unit Sales, but are included in Honda Group Unit Sales of our automobile segment.
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