HMC » Topics » Business Segment

This excerpt taken from the HMC 6-K filed Nov 6, 2009.

Business Segment

With respect to Honda’s sales for the fiscal first half by business segment, unit sales of motorcycles totaled 4,659 thousand units, a decrease of 16.9% from the same period in 2008. Unit sales in Japan totaled 97 thousand units, a decrease of 29.2%. Outside of Japan, total unit sales was 4,562 thousand units, a decrease of 16.6%*, due mainly to decreased unit sales in Asia and Other Regions including South America. Revenue from sales to external customers decreased 33.0%, to JPY 531.6 billion (USD 5,894 million) from the same period in 2008. Operating income decreased by 80.7% to JPY 14.9 billion (USD 166 million) from the same period in 2008, due primarily to decreased profit attributable to decreased revenue and the impact of unfavorable currency effects, more than offsetting decreased SG&A expenses and R&D expenses.

 

* Of the net sales of Honda-brand motorcycle products that are manufactured and sold by overseas affiliates accounted for under the equity method, those with respect to which parts for manufacturing were not supplied from Honda or its subsidiaries are not included in net sales and other operating revenue, in conformity with U.S. generally accepted accounting principles. Accordingly, these unit sales are not included in the financial results. Sales of such products amounted to approximately 2,570 thousand units for the period.

Honda’s unit sales of automobiles for the fiscal first half totaled 1,604 thousand units, a decrease of 15.4% from the same period in 2008. In Japan, unit sales totaled 286 thousand units, an increase of 2.1% compared to the same period last year, due mainly to favorable sales of Insight and FREED. Unit sales outside of Japan decreased 18.5% to 1,318 thousand units, due mainly to decreased unit sales in North America. Revenue from sales to external customers decreased 29.9% to JPY 3,083.9 billion (USD 34,186 million) from the same period in 2008, due mainly to decreased unit sales and the unfavorable currency translation effects. Honda reported an operating loss of JPY 7.6 billion (USD 85 million), due primarily to decreased profit attributable to decreased unit sales, the increase in fixed costs and the impact of unfavorable currency effects, more than offsetting decreased SG&A expenses and R&D expenses and continuing cost reduction efforts.

 

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Revenue from sales to external customers in the financial services business increased 2.2% to JPY 310.9 billion (USD 3,447 million) from the same period in 2008, due mainly to an increase in operating lease revenues, more than offsetting the unfavorable currency translation effects. Operating income increased 77.1% to JPY 94.0 billion (USD 1,042 million) from the same period in 2008, due primarily to the decreased allowance for losses on lease residual values and a decrease in funding costs.

Honda’s unit sales of power products was 2,090 thousand units, down by 17.7% from the same period in 2008. In Japan, unit sales totaled 146 thousand units, a decrease of 52.1% from the same period last year. Unit sales outside of Japan decreased 13.1%, to 1,944 thousand units, due primarily to a decline of unit sales in all the regions. Revenue from sales to external customers in power product and other businesses decreased by 32.8% to JPY 132.3 billion (USD 1,467 million) from the same period in 2008, due mainly to decreased unit sales of power products and unfavorable currency translation effects. Honda reported an operating loss of JPY 10.6 billion (USD 118 million), primarily due to decreased profit attributable to decreased revenue, which more than offset decreased SG&A expenses.

 

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This excerpt taken from the HMC 6-K filed Aug 5, 2009.

Business Segment

With respect to Honda’s sales for the fiscal first quarter by business segment, motorcycle unit sales totaled 2,252 thousand units, a decrease of 17.1% from the same period last year. Unit sales in Japan totaled 45 thousand units, a decrease of 22.4% compared to the same period last year. Outside of Japan, total unit sales was 2,207 thousand units, a decrease of 16.9% from the same period in 2008*, due mainly to a decrease in sales of motorcycle knocked-down parts for local production at Asian affiliates accounted for under the equity method and decreased unit sales in Other regions including South America, more than offsetting increased unit sales in India and Vietnam. Revenue from sales to external customers decreased 34.8%, to JPY 256.3 billion (USD 2,670 million) from the same period last year, due mainly to decreased unit sales and unfavorable currency translation effects. Operating income decreased 81.9% to JPY 5.6 billion (USD 59 million) from the same period last year, due primarily to decreased profit attributable to decreased revenue and the unfavorable impact of currency effects, more than offsetting decreased SG&A expenses and R&D expenses.

 

* Of the net sales of Honda-brand motorcycle products that are manufactured and sold by overseas affiliates accounted for under the equity method, those with respect to which parts for manufacturing were not supplied from Honda or its subsidiaries are not included in net sales and other operating revenue, in conformity with U.S. generally accepted accounting principles. Accordingly, these unit sales are not included in the financial results. Sales of such products amounted to approximately 1,220 thousand units for the period.

Honda’s automobile unit sales totaled 766 thousand units, a decrease of 20.4% from the same period last year. In Japan, unit sales amounted to 128 thousand units, the same level compared to the same period last year due mainly to favorable sales of Insight and FREED despite weak demand in the market. Unit sales outside of Japan decreased 23.5% to 638 thousand units from the corresponding period last year, due mainly to decreased unit sales in North America. Revenue from sales to external customers decreased 31.6% to JPY 1,523.4billion (USD 15,867 million) from the same period in 2008, due mainly to decreased unit sales and the unfavorable currency translation effects. Honda reported operating loss of JPY 21.3 billion (USD 223 million), a decrease of JPY 171.7 billion from the same period last year, due primarily to decreased revenue, the increase in fixed costs as a result of reduced production and the unfavorable impact of currency effects, more than offsetting decreased SG&A expenses and R&D expenses and continuing cost reduction efforts.

Revenue from customers in the financial services business increased 6.9% to JPY 155.9 billion (USD 1,624 million) from the same period in 2008, due mainly to an increase in operating lease revenues. Operating income increased 62.8% to JPY 46.8 billion (USD 488 million) from the same period in 2008, due primarily to the decreased allowance for losses on lease residual values and a decrease of funding cost.

Honda’s power product unit sales totaled 1,158 thousand units, a decrease of 13.5% from the same period in 2008. In Japan, unit sales totaled 71 thousand units, a decrease of 55.3% from the same period last year. Unit sales outside of Japan totaled 1,087 thousand units, a decrease of 7.9% from the corresponding period last year, due primarily to a decline of unit sales in Europe. Revenue from sales to external customers in power product and other businesses decreased by 33.7% to JPY 66.5 billion (USD 693 million) from the same period last year, due mainly to decreased unit sales of power products and unfavorable currency translation effects. Honda reported operating loss of JPY 5.9 billion (USD 62 million), a decrease of JPY 6.1 billion from the same period in 2008. This was primarily due to decreased revenue, which more than offset decreased SG&A expenses.

 

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This excerpt taken from the HMC 6-K filed Feb 10, 2009.

Business Segment

With respect to Honda’s sales for the fiscal nine months by business segment, unit sales of motorcycles totaled 8,112 thousand units, an increase of 16.7% from the same period in 2007. Unit sales in Japan totaled 181 thousand units, a decrease of 26.1%. Overseas unit sales was 7,931 thousand units, an increase of 18.2%*, due mainly to the increased units sales of motorcycle knocked-down parts for local production at Honda’s affiliates accounted for under the equity method in Asia. Revenue from sales to external customers increased 2.0%, to JPY 1,137.0 billion (USD 12,491 million) from the same period in 2007, due mainly to increased revenue in Asia and other regions including Brazil, despite the negative currency translation effects. Operating income increased by 4.3% to JPY 102.7 billion (USD 1,129 million) from the same period in 2007, due mainly to the positive impact of increased revenue, model mix, etc. and continuing cost reduction efforts, which more than offset increased raw material costs, the negative currency effects caused by the appreciation of the Japanese yen and increased depreciation expenses.

 

* Of the net sales of Honda-brand motorcycle products that are manufactured and sold by overseas affiliates accounted for under the equity method, those with respect to which parts for manufacturing were not supplied from Honda or its subsidiaries are not included in net sales and other operating revenue, in conformity with U.S. generally accepted accounting principles. Accordingly, these unit sales are not included in the financial results. Sales of such products amounted to approximately 3,590 thousand units for the period.

Honda’s unit sales of automobiles was 2,837 thousand units, decreased by 1.3% from the same period in 2007. In Japan, unit sales totaled 415 thousand units, decreased by 2.1% from the same period in 2007. Overseas unit sales decreased 1.1% to 2,422 thousand units, due mainly to decreased unit sales in North America, which more than offset the increased unit sales in Asia and other regions including Brazil. Revenue from sales to external customers decreased 10.7% to JPY 6,372.9 billion (USD 70,009 million) from the same period in 2007, due to the negative impact of the currency translation effects. Operating income decreased 46.6% to JPY 310.8 billion (USD 3,415 million) from the same period in 2007, primarily due to increased raw material costs, increased SG&A expenses, increased depreciation expenses and the negative currency effects caused by the appreciation of the Japanese yen, which more than offset the positive impact of the change in revenue, continuing cost reduction efforts and decreased R&D expenses.

Revenue from sales to external customers in financial services business increased 13.0% to JPY 447.0 billion (USD 4,911 million) from the same period in 2007, due mainly to the increased operating lease revenues, despite negative currency translation effects. Operating income decreased 27.6% to JPY 62.5 billion (USD 688 million) from the same period in 2007, due mainly to the increased provision related to credit losses and allowance for losses on lease residual values and the negative currency effects caused by the appreciation of the Japanese yen, which more than offset the increased revenue.

Honda’s unit sales of power products was 3,656 thousand units, down by 7.8 % from the same period in 2007. In Japan, unit sales totaled 415 thousand units, an increase of 4.0%. Overseas unit sales decreased 9.1%, to 3,241 thousand units, due mainly to the declined sales in North America and Europe. Revenue from sales to external customers in power product and other businesses decreased by 11.2% to JPY 270.3 billion (USD 2,970 million) from the same period in 2007, due mainly to the negative currency translation effects and decreased unit sales in power product business. Operating income decreased JPY 20.7 billion from the same period in 2007, to record operating loss of JPY 3.5 billion (USD 39 million), due mainly to the negative impact of decreased revenue, increased R&D expenses of other businesses and the negative currency effects caused by the appreciation of the Japanese yen, more than offsetting decreased SG&A expenses.

 

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This excerpt taken from the HMC 6-K filed Aug 8, 2008.

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.

 

* Of the net sales of Honda-brand motorcycle products that are manufactured and sold by overseas affiliates accounted for under the equity method, those with respect to which parts for manufacturing were not supplied from Honda or its subsidiaries are not included in net sales and other operating revenue, in conformity with U.S. generally accepted accounting principles. Accordingly, these unit sales are not included in the financial results. Sales of such products amounted to approximately 1,210 thousand units for the period.

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. Operating income increased 8.7% to JPY 161.2 billion (USD 1,515 million) from the same period last year, due primarily to decreased sales incentives in North America, the change in sales price for the new model year, increased profit attributable to increased unit sales particularly in Asia and South America and continuing cost reduction efforts, more than offsetting the negative currency effects caused by appreciation of the Japanese yen, increased SG&A expenses and increased raw material costs.

 

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Revenue from customers in the financial services business increased 15.9% to JPY 145.8 billion (USD 1,370 million) from the same period in 2007, due mainly to an increase in operating lease revenues. Operating income decreased 15.9% to JPY 28.7 billion (USD 270 million) from the same period in 2007, due primarily to the increased expenses related to allowance for losses on lease residual values, more than offsetting increased profit attributable to increased revenue.

Honda’s power product unit sales totaled 1,339 thousand units, a decrease of 12.4% from the same period in 2007. In Japan, unit sales totaled 159 thousand units, an increase of 17.8% from the same period last year. Overseas unit sales totaled 1,180 thousand units, a decrease of 15.4% from the corresponding period last year, due primarily to a decline of unit sales in Europe, and of general-purpose engines for OEM* production in North America, which more than offset increased unit sales of general-purpose engines in Asia.

Revenue from external customers in the power product and other businesses decreased by 8.6% to JPY 100.3 billion (USD 943 million) from the same period last year, due mainly to decreased unit sales of power products. Operating income decreased 97.4% to JPY 200 million (USD 2 million) from the same period in 2007. This was primarily due to decreased profit attributable to decreased revenue and increased R&D expenses of other businesses.

* OEM (Original equipment manufacturing)

    OEM refers to a manufacturing of products and components supplied for sale under a third-party brand.

 

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This excerpt taken from the HMC 6-K filed Feb 14, 2008.

Business Segment

With respect to Honda sales for the fiscal nine months by business segment, motorcycle unit sales totaled 6,952 thousand units, a decrease of 12.7% from the same period in 2006. Unit sales in Japan totaled 245 thousand units, a decrease of 5.0%. Overseas unit sales was 6,707 thousand units, a decrease of 12.9%* from the same period in 2006, due mainly to decreased units sales of parts for local production at Honda’s affiliates accounted for under the equity method in Asia, offsetting an increase in unit sales in other regions especially in Latin America. Revenue from external customers increased 17.5%, to JPY 1,114.6 billion (USD 9,765 million) from the same period in 2006, due mainly to increased revenue in Asia and other regions and the positive impact of currency translation effects. Operating income increased by 74.8% to JPY 98.5 billion (USD 863 million) from the same period in 2006, due mainly to the increased profit on higher revenue and the positive currency effects caused by depreciation of the Japanese yen, offsetting increased SG&A expenses and R&D expenses.

 

* Of the net sales of Honda-brand motorcycle products that are manufactured and sold by overseas affiliates accounted for under the equity method, those with respect to which parts for manufacturing were not supplied from Honda or its subsidiaries are not included in net sales and other operating revenue, in conformity with U.S. generally accepted accounting principles. Accordingly, these unit sales are not included in the financial results. Sales of such products amounted to approximately 3,290 thousand units for the period.

Honda automobile unit sales was 2,874 thousand units, an increase of 6.6% from the same period in 2006. In Japan, unit sales decreased 12.2% to 424 thousand units. Overseas unit sales increased 10.8% to 2,450 thousand units, due mainly to the increased unit sales in North America, Europe, Asia and other regions. Revenue from external customers increased 10.4% to JPY 7,132.7 billion (USD 62,486 million) from the same period in 2006, due to the increased overseas unit sales and the positive impact of currency translation effects. Operating income increased 31.8% to JPY 582.0 billion (USD 5,099 million) from the same period in 2006, due mainly to higher revenue, continuing cost reduction efforts and positive currency effects caused by the depreciation of the Japanese yen, which offset the negative impact of increased raw material costs, increased depreciation expenses and increased SG&A expenses and R&D expenses.

 

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Revenue from customers in financial services business increased 35.3% to JPY 395.5 billion (USD 3,465 million) from the same period in 2006. Operating income increased 15.9% to JPY 86.4 billion (USD 757 million) from the same period in 2006, due mainly to increased profit on higher revenue, which offset increased SG&A expenses.

Honda power products unit sales was 3,965 thousand units, down 7.6 % from the same period in 2006. In Japan, unit sales totaled 399 thousand units, an increase of 2.8% from the same period in 2006. Overseas unit sales decreased 8.7%, to 3,566 thousand units, due mainly to a decline in unit sales in North America. Revenue from external customers in power product and other businesses increased by 1.5% to JPY 304.3 billion (USD 2,667 million) from the same period in 2006. Operating income was JPY 17.2 billion (USD 151 million), a decrease of 40.5% from the same period in 2006, due mainly to increased SG&A expenses and the increased R&D expenses in Other businesses.

 

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This excerpt taken from the HMC 6-K filed Dec 18, 2007.

Business Segment

With respect to Honda’s sales for the fiscal second quarter by business segment, unit sales of motorcycles totaled 2,333 thousand units, which was a decrease of 17.2% from the same period in 2006. Unit sales in Japan totaled 107 thousand units, an increase of 9.2% from the same period in 2006. Overseas unit sales was 2,226 thousand units, a decrease of 18.1% from the same period in 2006*, due mainly to the decreased unit sales of parts for local production at Honda’s affiliates accounted for under the equity method in Asia, more than offsetting an increase in unit sales in other regions especially in Latin America. Revenue from external customers increased 13.8%, to ¥381.6 billion (U.S.$3,306 million) from the same period in 2006, due mainly to the positive impact of the currency translation effects, offsetting the negative impact of the decreased unit sales. Operating income increased by 15.4% to ¥37.0 billion (U.S.$321 million) from the same period in 2006, due mainly to the positive currency effects caused by the depreciation of the Japanese yen, offsetting the negative impact of the increased sales incentives in North America, the increased SG&A expenses and R&D expenses.

 


* Net sales of Honda-brand motorcycle products that are manufactured and sold by overseas affiliates accounted for under the equity method, are not included in net sales and other operating revenue when no parts were supplied by Honda or its subsidiaries, in conformity with U.S. generally accepted accounting principles. Accordingly, these unit sales are not included in the financial results. Sales of such products amounted to approximately 1,020 thousand units for the quarter.

 

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Honda’s automobile unit sales totaled 937 thousand units, an increase of 6.0% from the same period in 2006. In Japan, unit sales amounted to 143 thousand units, a decrease of 16.4% from the same period in 2006. Overseas unit sales increased 11.4% to 794 thousand units from the same period in 2006, due mainly to the increased unit sales of the CR-V in North America, Europe, Asia and the increased unit sales in other regions. Revenue from external customers increased 12.3% to ¥2,356.4 billion (U.S.$20,415 million) from the same period in 2006, due mainly to the increased unit sales and the positive impact of the currency translation effects.

Operating income increased 62.8% to ¥213.0 billion (U.S.$1,846 million) from the same period in 2006, due mainly to the positive impact of the increased profit attributable to higher revenue, continuing cost reduction efforts and the positive currency effects caused by the depreciation of the Japanese yen, offsetting the negative impact of the increase of sales incentives in North America, increased raw material costs, the increased depreciation expenses, SG&A expenses and R&D expenses.

Revenue from external customers in financial services business increased 36.4% to ¥133.7 billion (U.S.$1,159 million) from the same period in 2006, due mainly to the increased finance receivables, the positive impact of the currency translation effects and the increased operating lease revenues. Operating income increased 29.7% to ¥29.3 billion (U.S.$254 million) from the same period in 2006, due primarily to the increased profit attributable to higher revenue, the decreased SG&A expenses and the positive currency effects caused by the depreciation of the Japanese yen.

Honda’s power products unit sales totaled 1,258 thousand units, an increase of 6.0% from the same period in 2006. In Japan, unit sales totaled 141 thousand units, an increase of 11.0% from the same period in 2006. Overseas unit sales totaled 1,117 thousand units, an increase of 5.4% from the same period in 2006, due mainly to increased unit sales of lawnmowers in Europe, increased unit sales in Asia, including the increased unit sales of general-purpose engines in China and increased unit sales in other regions, offsetting decreased unit sales of lawnmowers in the United States. Revenue from external customers in power product and other businesses increased by 1.0% to ¥99.4 billion (U.S.$862 million) from the same period in 2006, due mainly to the increased unit sales of power products and the positive impact of the currency translation effects. Operating income decreased 6.5% to ¥6.9 billion (U.S.$60 million) from the same period in 2006. This was primarily due to the increased R&D expenses, offsetting the positive impact of the decreased SG&A expenses and the currency effects caused by the depreciation of the Japanese yen.

 

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Forecasts for Fiscal Year Ending March 31, 2008

In regard to the forecasts of the financial results for the fiscal year ending March 31, 2008, Honda projects consolidated results to be as shown below:

This excerpt taken from the HMC 6-K filed Nov 20, 2007.

Business Segment

With respect to Honda’s sales for the fiscal first half by business segment, unit sales of motorcycles totaled 4,586 thousand units, a decrease of 11.7% from the same period in 2006. Unit sales in Japan totaled 191 thousand units, an increase of 2.1%. Overseas unit sales was 4,395 thousand units, a decrease of 12.3%*, due mainly to the decreased units sales of parts for local production at Honda’s affiliates accounted for under the equity method in Asia, offsetting an increase in unit sales in other regions especially in Latin America. Revenue from external customers increased 16.2%, to JPY 749.9 billion (USD 6,497 million) from the same period in 2006, due mainly to the positive impact of the currency translation effects. Operating income increased by 50.7 % to JPY 68.1 billion (USD 591 million) from the same period in 2006, due mainly to the positive currency effects caused by the depreciation of the Japanese yen, offsetting the increased SG&A expenses and R&D expenses.

 

* Of the net sales of Honda-brand motorcycle products that are manufactured and sold by overseas affiliates accounted for under the equity method, those with respect to which parts for manufacturing were not supplied from Honda or its subsidiaries are not included in net sales and other operating revenue, in conformity with U.S. generally accepted accounting principles. Accordingly, these unit sales are not included in the financial results. Sales of such products amounted to approximately 2,120 thousand units for the period.

Honda’s unit sales of automobiles was 1,883 thousand units, increased by 5.8% from the same period in 2006. In Japan, unit sales decreased 14.7% to 279 thousand units. Overseas unit sales increased 10.4% to 1,604 thousand units, due mainly to the increased unit sales in North America, Europe, Asia and other regions. Revenue from external customers increased 11.7% to JPY 4,683.7 billion (USD 40,576million) from the same period in 2006, due to the increased unit sales and the positive impact of the currency translation effects. Operating income increased 28.6% to JPY 361.3 billion (USD 3,131 million) from the same period in 2006.

Revenue from external customers in financial services business increased 38.1% to JPY 259.6 billion (USD 2,249 million) from the same period in 2006, due mainly to the increased operating lease revenues. Operating income increased 22.5% to JPY 63.5 billion (USD 550 million) from the same period in 2006, due mainly to the increased profit attributable to higher revenue and the positive currency effects caused by the depreciation of the Japanese yen, which offset the negative impact of the increased SG&A expenses.

Honda’s unit sales of power products was 2,787 thousand units, down by 4.3 % from the same period in 2006. In Japan, unit sales totaled 276 thousand units, an increase of 4.5%. Overseas unit sales decreased 5.1%, to 2,511 thousand units, due mainly to the declined unit sales in North America. Revenue from external customers in power product and other businesses increased by 3.3% to JPY 209.1 billion (USD 1,812 million) from the same period in 2006, due mainly to the positive impact of the currency translation effects. Operating income was JPY 14.9 billion (USD 130 million), a decrease of 19.1% from the same period in 2006, due mainly to the increased R&D expenses, which offset the positive impact of the decreased SG&A expenses and the positive currency effects caused by the depreciation of the Japanese yen.

 

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This excerpt taken from the HMC 6-K filed Sep 19, 2007.

Business Segment

With respect to Honda’s sales for the fiscal first quarter by business segment, unit sales of motorcycles totaled 2,253 thousand units, which was a decrease of 5.3% from the corresponding period in 2006. Unit sales in Japan was 84 thousand units, a decrease of 5.6% from the corresponding period in 2006. Overseas unit sales was 2,169 thousand units, a decrease of 5.3% from the corresponding period in 2006*, due mainly to the decreased unit sales of parts for local production at Honda’s affiliates accounted for under the equity method in Asia, offsetting the positive impact of increased unit sales in other regions especially in Latin America. Revenue from external customers increased 18.8%, to JPY 368.3 billion (USD 2,988 million) from the corresponding period in 2006, due mainly to the positive impact of the currency translation effects, offsetting the negative impact of decreased unit sales. Operating income increased by 137.1% to JPY 31.1 billion (USD 253 million) from the corresponding period in 2006, due mainly to the positive impact of the currency effects caused by the depreciation of the Japanese yen, offsetting the negative impact of the increased SG&A expenses and the increased R&D expenses.

 


* Of the net sales of Honda-brand motorcycle products that are manufactured and sold by overseas affiliates accounted for under the equity method, those with respect to which parts for manufacturing were not supplied from Honda or its subsidiaries are not included in net sales and other operating revenue, in conformity with U.S. generally accepted accounting principles. Accordingly, these unit sales are not included in the financial results. Sales of such products amounted to approximately 1,100 thousand units for the quarter.

 

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Honda’s unit sales of automobiles was 946 thousand units, increased by 5.6% from the corresponding period in 2006. In Japan, unit sales was 136 thousand units, a decrease of 12.8% from the corresponding period in 2006. Overseas unit sales increased 9.5% to 810 thousand units from the corresponding period in 2006, due to the increased unit sales of CR-V in North America, Europe, Asia, the increased unit sales in other regions, and the increased unit sales of parts for local production at Honda’s affiliates accounted for under the equity method in China. Revenue from external customers increased 11.1% to JPY 2,327.2 billion (USD 18,881 million) from the corresponding period in 2006, due mainly to the increased unit sales and the positive impact of the currency translation effects. Operating income decreased 1.2% to JPY 148.3 billion (USD 1,203 million) from the corresponding period in 2006, due mainly to the substantially increased raw material costs, the increased depreciation expenses, the increased sales incentives mainly in North America, the increased SG&A expenses and the increased R&D expenses, offsetting the positive impact of the increased profit attributable to higher revenue, continuing cost reduction effects and the currency effects caused by the depreciation of the Japanese yen.

Revenue from external customers in financial services business increased 39.9% to JPY 125.8 billion (USD 1,021 million) from the corresponding period in 2006, due mainly to the increased sales attributable to the increase in finance subsidiaries-receivables from the growth of automobile business in North America, the positive impact of the currency translation effects and the increased operating lease revenues. Operating income increased 16.9% to JPY 34.2 billion (USD 278 million) from the corresponding period in 2006, due primarily to the increased profit attributable to higher revenue and the positive impact of the currency effects caused by the depreciation of the Japanese yen, which offset the increased SG&A expenses.

Honda’s unit sales of power products was 1,529 thousand units, a decrease of 11.3% from the corresponding period in 2006. In Japan, unit sales totaled 135 thousand units, a decrease of 1.5% from the corresponding period in 2006. Overseas unit sales was 1,394 thousand units, a decrease of 12.2% from the corresponding period in 2006, mainly due to decreased unit sales of engines supplied on an OEM basis in North America, offsetting the positive impact of increased sales of general purpose engines in Asia. Revenue from external customers in power product and other businesses increased by 5.5% to JPY 109.7 billion (USD 890 million) from the corresponding period in 2006, due mainly to the positive impact of the currency translation effects. Operating income decreased 27.6% to JPY 7.9 billion (USD 65 million) from the corresponding period in 2006. This was primarily due to the increased SG&A expenses and the increased R&D expenses, offsetting the positive impact of the currency effects caused by the depreciation of the Japanese yen.

 


* OEM (Original equipment manufacturing)

OEM refers to a manufacturing of products and components supplied for sale under a third-party brand.

 

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n Forecasts for Fiscal Year Ending March 31, 2008

In regard to the forecasts of the financial results for the fiscal year ending March 31, 2008, Honda projects consolidated results to be as shown below:

This excerpt taken from the HMC 6-K filed Aug 10, 2007.

Business Segment

With respect to Honda’s sales for the fiscal first quarter by business segment, unit sales of motorcycles totaled 2,253 thousand units, which was a decrease of 5.3% from the corresponding period in 2006. Unit sales in Japan was 84 thousand units, a decrease of 5.6% from the corresponding period in 2006. Overseas unit sales was 2,169 thousand units, a decrease of 5.3% from the corresponding period in 2006*, due mainly to the decreased unit sales of parts for local production at Honda’s affiliates accounted for under the equity method in Asia, offsetting the positive impact of increased unit sales in other regions especially in Latin America. Revenue from external customers increased 18.8%, to JPY 368.3 billion (USD 2,988 million) from the corresponding period in 2006, due mainly to the positive impact of the currency translation effects, offsetting the negative impact of decreased unit sales. Operating income increased by 137.1% to JPY 31.1 billion (USD 253 million) from the corresponding period in 2006, due mainly to the positive impact of the currency effects caused by the depreciation of the Japanese yen, offsetting the negative impact of the increased SG&A expenses and the increased R&D expenses.

 

* Of the net sales of Honda-brand motorcycle products that are manufactured and sold by overseas affiliates accounted for under the equity method, those with respect to which parts for manufacturing were not supplied from Honda or its subsidiaries are not included in net sales and other operating revenue, in conformity with U.S. generally accepted accounting principles. Accordingly, these unit sales are not included in the financial results. Sales of such products amounted to approximately 1,100 thousand units for the quarter.

 

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Honda’s unit sales of automobiles was 946 thousand units, increased by 5.6% from the corresponding period in 2006. In Japan, unit sales was 136 thousand units, a decrease of 12.8% from the corresponding period in 2006. Overseas unit sales increased 9.5% to 810 thousand units from the corresponding period in 2006, due to the increased unit sales of CR-V in North America, Europe, Asia, the increased unit sales in other regions, and the increased unit sales of parts for local production at Honda’s affiliates accounted for under the equity method in China. Revenue from external customers increased 11.1% to JPY 2,327.2 billion (USD 18,881 million) from the corresponding period in 2006, due mainly to the increased unit sales and the positive impact of the currency translation effects. Operating income decreased 1.2% to JPY 148.3 billion (USD 1,203 million) from the corresponding period in 2006, due mainly to the substantially increased raw material costs, the increased depreciation expenses, the increased sales incentives mainly in North America, the increased SG&A expenses and the increased R&D expenses, offsetting the positive impact of the increased profit attributable to higher revenue, continuing cost reduction effects and the currency effects caused by the depreciation of the Japanese yen.

Revenue from external customers in financial services business increased 39.9% to JPY 125.8 billion (USD 1,021 million) from the corresponding period in 2006, due mainly to the increased sales attributable to the increase in finance subsidiaries-receivables from the growth of automobile business in North America, the positive impact of the currency translation effects and the increased operating lease revenues. Operating income increased 16.9% to JPY 34.2 billion (USD 278 million) from the corresponding period in 2006, due primarily to the increased profit attributable to higher revenue and the positive impact of the currency effects caused by the depreciation of the Japanese yen, which offset the increased SG&A expenses.

Honda’s unit sales of power products was 1,529 thousand units, a decrease of 11.3% from the corresponding period in 2006. In Japan, unit sales totaled 135 thousand units, a decrease of 1.5% from the corresponding period in 2006. Overseas unit sales was 1,394 thousand units, a decrease of 12.2% from the corresponding period in 2006, mainly due to decreased unit sales of engines supplied on an OEM basis in North America, offsetting the positive impact of increased sales of general purpose engines in Asia. Revenue from external customers in power product and other businesses increased by 5.5% to JPY 109.7 billion (USD 890 million) from the corresponding period in 2006, due mainly to the positive impact of the currency translation effects. Operating income decreased 27.6% to JPY 7.9 billion (USD 65 million) from the corresponding period in 2006. This was primarily due to the increased SG&A expenses and the increased R&D expenses, offsetting the positive impact of the currency effects caused by the depreciation of the Japanese yen.

 

* OEM (Original equipment manufacturing)

OEM refers to a manufacturing of products and components supplied for sale under a third-party brand.

 

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This excerpt taken from the HMC 6-K filed May 22, 2007.

Business Segment

With respect to Honda’s sales for the fiscal year by business segment, unit sales of motorcycles totaled 10,369 thousand units, an increase of 1.0% from the previous fiscal year. Unit sales in Japan was 337 thousand units, a decrease of 8.4%. Overseas unit sales was 10,032 thousand units, an increase of 1.3%*, due mainly to an increase in unit sales in other regions especially in Latin America. Revenue from unaffiliated customers increased 11.8%, to JPY 1,370.6 billion (USD 11,610million) from the previous fiscal year, due mainly to the increased unit sales and the positive impact of the currency translation effects. Operating income decreased by 11.7 % to JPY 100.6 billion (USD 852 million) from the previous fiscal year, due mainly to the increased SG&A expenses and the increased R&D expenses and the gain on return which was recorded in the fiscal year ended March 31, 2006, offsetting the positive impact of the increased profit attributable to higher revenue and the currency effects caused by the depreciation of the Japanese yen.

* Of the net sales of Honda-brand motorcycle products that are manufactured and sold by overseas affiliates accounted for under the equity method, those with respect to which parts for manufacturing were not supplied from Honda or its subsidiaries are not included in net sales and other operating revenue, in conformity with U.S. generally accepted accounting principles. Accordingly, these unit sales are not included in the financial results. Sales of such products amounted to approximately 2,850 thousand units for the period.

Honda’s unit sales of automobiles was 3,652 thousand units, increased by 7.7% from the previous fiscal year. In Japan, unit sales decreased 3.4% to 672 thousand units. Overseas unit sales increased 10.6% to 2,980 thousand units, due mainly to the increased unit sales in North America, Europe, Asia and other regions. Revenue from unaffiliated customers increased 11.0% to JPY 8,889.0 billion (USD 75,299million) from the previous fiscal year, due to the increased unit sales and the positive impact of the currency translation effects. Operating income decreased 4.6% to JPY 599.5 billion (USD 5,078million) from the previous fiscal year, due mainly to the negative impact of the change in model mix, the soaring raw material costs, the increased SG&A expenses, the increased R&D expenses and the gain on return which was recorded in the fiscal year ended March 31, 2006, which offset the positive impact of the increased profit attributable to higher revenue, continuing cost reduction effects and the currency effects caused by the depreciation of the Japanese yen.

Revenue from unaffiliated customers in financial services business increased 33.5% to JPY 409.7 billion (USD 3,471million) from the previous fiscal year. Operating income increased 27.6% to JPY 115.5 billion (USD 978 million) from the previous fiscal year, due mainly to the positive impact of the increased profit attributable to higher revenue and the currency effects caused by the depreciation of the Japanese yen, which offset the negative impact of the increased funding costs.

 

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Honda’s unit sales of power products was 6,421 thousand units, up by 9.3 % from the previous fiscal year. In Japan, unit sales totaled 527 thousand units, an increase of 8.2%. Overseas unit sales was 5,894 thousand units, an increase of 9.4%, due mainly to the increased unit sales in North America and Europe. Revenue from unaffiliated customers in power product and other businesses increased by 12.7% to JPY 417.7 billion (USD 3,538million) from the previous fiscal year, due mainly to the increased unit sales of power products and the positive impact of the currency translation effects. Operating income was JPY 36.1 billion (USD 306 million), an increase of 0.6% from the previous fiscal year, due mainly to the positive impact of the increased profit attributable to higher revenue and the currency effects caused by the depreciation of the Japanese yen, which offset the negative impact of the increased SG&A expenses and the gain on return which was recorded in the fiscal year ended March 31, 2006.

 

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This excerpt taken from the HMC 6-K filed Mar 13, 2007.

Business Segment

With respect to Honda’s sales for the fiscal third quarter by business segment, unit sales of motorcycles totaled 2,765 thousand units, a decrease of 0.8% from the corresponding period in 2005. Unit sales in Japan was 71 thousand units, a decrease of 6.6%. Overseas unit sales was 2,694 thousand units, a decrease of 0.7%*, due mainly to the decrease in unit sales of ATVs and kids motorcycles in North America offsetting the positive impact of the increased unit sales in other regions, especially in Latin America. Revenue from unaffiliated customers increased 7.0%, to JPY 303.2 billion (USD 2,546 million) from the corresponding period in 2005, due mainly to the positive impact of the currency translation effects, offsetting the negative impact of the decrease in unit sales. Operating income decreased by 17.0% to JPY 11.1 billion (USD 94 million) from the corresponding period in 2005, due mainly to the increased SG&A expenses and the increased R&D expenses offsetting the positive impact of the currency effects caused by the depreciation of the Japanese yen.

 


* Of the net sales of Honda-brand motorcycle products that are manufactured and sold by overseas affiliates accounted for under the equity method, those with respect to which parts for manufacturing were not supplied from Honda or its subsidiaries are not included in net sales and other operating revenue, in conformity with U.S. generally accepted accounting principles. Accordingly, these unit sales are not included in the financial results. Sales of such products amounted to approximately 640 thousand units for the quarter.

 

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Honda’s unit sales of automobiles was 915 thousand units, increased by 12.1% from the corresponding period in 2005. In Japan, unit sales was 156 thousand units, which was approximately the same level as the corresponding period in 2005. Overseas unit sales increased 15.0% to 759 thousand units, due to the increased unit sales in North America, Europe, Asia and other regions. This increase of unit sales was attributable to good sales of, for example, the Accord and the CR-V in North America, and to the increase in unit sales of parts for local production at Honda’s affiliates accounted for under the equity method in China. Revenue from unaffiliated customers increased 12.3% to JPY 2,263.8 billion (USD 19,007 million) from the corresponding period in 2005, due to the increased unit sales and the positive impact of the currency translation effects. Operating income increased 6.4% to JPY 160.7 billion (USD 1,350 million) from the corresponding period in 2005, due mainly to the positive impact of the increased profit attributable to higher revenue, the change in sales price in North America, continuing cost reduction effects and the currency effects caused by the depreciation of the Japanese yen, which offset the negative impact of the change in model mix, the increased sales incentives in North America, the soaring raw material costs, the increased SG&A expenses and the increased R&D expenses.

Revenue from unaffiliated customers in financial services business increased 29.9% to JPY 104.2 billion (USD 875 million) from the corresponding period in 2005, due to the increased sales attributable to the increase of finance subsidiaries-receivables from the growth of automobile business in North America and the positive impact of the currency translation effects. Operating income increased 3.3% to JPY 22.7 billion (USD 191 million) from the corresponding period in 2005, due primarily to the increased sales, which were attributable to the increase of finance subsidiaries-receivables from the growth of business, and to the currency effects caused by the depreciation of the Japanese yen, offsetting the negative impact of the increase in SG&A expenses including the increase of losses on lease residual values.

Honda’s unit sales of power products was 1,382 thousand units, up by 21.9 % from the corresponding period in 2005, due mainly to the increased unit sales of general purpose engines in the U.S. and China and in Japan. In Japan, unit sales totaled 124 thousand units, an increase of 12.7%. Overseas unit sales was 1,258 thousand units, an increase of 22.9%, due mainly to the positive impact of the increased unit sales in North America, Europe, Asia and other regions. Revenue from unaffiliated customers in power product and other businesses increased by 5.3% to JPY 97.2 billion (USD 817 million) from the corresponding period in 2005, due mainly to the increased unit sales of power products and the positive impact of the currency translation effects. Operating income increased 23.5% to JPY 10.4 billion (USD 88 million) from the corresponding period in 2005. This was primarily due to the positive impact of the increased profit attributable to higher revenue and the currency effects caused by the depreciation of the Japanese yen, which offset the negative impact of the increased SG&A expenses.

 

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n Forecasts for the Fiscal Year Ending March 31, 2007

In regard to the forecasts of the financial results for the fiscal year ending March 31, 2007, Honda projects consolidated and unconsolidated results to be as shown below:

This excerpt taken from the HMC 6-K filed Feb 15, 2007.

Business Segment

With respect to Honda’s sales for the fiscal nine months by business segment, unit sales of motorcycles totaled 7,961 thousand units, an increase of 1.3% from the corresponding period in 2005. Unit sales in Japan was 258 thousand units, a decrease of 6.2%. Overseas unit sales was 7,703 thousand units, an increase of 1.6%*, due mainly to an increase in unit sales in other regions, offsetting the negative impact of the decrease in unit sales mainly in North America. Revenue from unaffiliated customers increased 13.7%, to JPY 948.8 billion (USD 7,967 million) from the corresponding period in 2005, due mainly to the increased unit sales and the positive impact of the currency translation effects. Operating income increased by 5.6 % to JPY 56.3 billion (USD 473 million) from the corresponding period in 2005, due mainly to the positive impacts of the increased profit attributable to higher revenue and the currency effects caused by the depreciation of the Japanese yen, offsetting the negative impact of the change in model mix, the increased SG&A expenses and the increased R&D expenses.

 

* Of the net sales of Honda-brand motorcycle products that are manufactured and sold by overseas affiliates accounted for under the equity method, those with respect to which parts for manufacturing were not supplied from Honda or its subsidiaries are not included in net sales and other operating revenue, in conformity with U.S. generally accepted accounting principles. Accordingly, these unit sales are not included in the financial results. Sales of such products amounted to approximately 1,700 thousand units for the period.

Honda’s unit sales of automobiles was 2,695 thousand units, increased by 8.2% from the corresponding period in 2005. In Japan, unit sales decreased 4.5% to 483 thousand units. Overseas unit sales increased 11.5% to 2,212 thousand units, due mainly to the increased unit sales in North America, Europe, Asia and other regions. Revenue from unaffiliated customers increased 12.2% to JPY 6,458.3 billion (USD 54,222 million) from the corresponding period in 2005, due to the increased unit sales and the positive impact of the currency translation effects. Operating income increased 14.6% to JPY 441.7 billion (USD 3,709 million) from the corresponding period in 2005, due mainly to the positive impact of the increased profit attributable to higher revenue, continuing cost reduction effects and the currency effects caused by the depreciation of the Japanese yen, which offset the negative impact of the change in model mix, the soaring raw material costs, the increased SG&A expenses and the increased R&D expenses.

 

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Revenue from unaffiliated customers in financial services business increased 30.5% to JPY 292.2 billion (USD 2,454 million) from the corresponding period in 2005. Operating income increased 12.0% to JPY 74.6 billion (USD 626 million) from the corresponding period in 2005, due mainly to the positive impact of the increased profit attributable to higher revenue and the currency effects caused by the depreciation of the Japanese yen, which offset the negative impact of the increased SG&A expenses.

Honda’s unit sales of power products was 4,293 thousand units, up by 14.3 % from the corresponding period in 2005. In Japan, unit sales totaled 388 thousand units, an increase of 11.2%. Overseas unit sales was 3,905 thousand units, an increase of 14.6%, due mainly to the increased unit sales in North America, Europe and other regions. Revenue from unaffiliated customers in power product and other businesses increased by 14.7% to JPY 299.7 billion (USD 2,517 million) from the corresponding period in 2005, due mainly to the increased unit sales of power products and the positive impact of the currency translation effects. Operating income was JPY 28.9 billion (USD 243 million), an increase of 27.0% from the corresponding period in 2005, due mainly to the positive impact of the increased profit attributable to higher revenue and the currency effects caused by the depreciation of the Japanese yen, which offset the negative impact of the change in model mix and the increased SG&A expenses.

 

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This excerpt taken from the HMC 6-K filed Nov 20, 2006.

Business Segment

With respect to Honda’s sales for the fiscal first half year by business segment, unit sales of motorcycles totaled 5,196 thousand units, an increase of 2.5% from the corresponding period in 2005. Unit sales in Japan was 187 thousand units, a decrease of 6.0%. Overseas unit sales was 5,009 thousand units, an increase of 2.8%*, due mainly to an increase in unit sales in other regions. Revenue from unaffiliated customers increased 17.2%, to JPY 645.6 billion (USD 5,476 million) from the corresponding period in 2005, due mainly to the increased unit sales and the positive impact of the currency translation effects. Operating income increased by 13.2 % to JPY 45.2 billion (USD 384 million) from the corresponding period in 2005, due mainly to the positive impacts of the increased profit attributable to higher revenue and the currency effects caused by the depreciation of the Japanese yen, offsetting the negative impact of the increased SG&A expenses.


* Of the net sales of Honda-brand motorcycle products that are manufactured and sold by overseas affiliates accounted for under the equity method, those with respect to which parts for manufacturing were not supplied from Honda or such subsidiaries are not included in net sales and other operating revenue, in conformity with U.S. generally accepted accounting principles. Accordingly, these unit sales are not included in the financial results. Such products amounted to approximately 1,060 thousand units for the period.

Honda’s unit sales of automobiles was 1,780 thousand units, increased by 6.3% from the corresponding period in 2005. In Japan, unit sales decreased 6.6% to 327 thousand units. Overseas unit sales increased 9.7% to 1,453 thousand units, due mainly to the increased unit sales in North America, Europe, Asia and other regions. Revenue from unaffiliated customers increased 12.2% to JPY 4,194.4 billion (USD 35,576 million) from the corresponding period in 2005, due to the increased unit sales and the positive impact of the currency translation effects. Operating income increased 20.0% to JPY 280.9 billion (USD 2,383 million) from the corresponding period in 2005, due mainly to the positive impact of the increased profit attributable to higher revenue, continuing cost reduction effects and the currency effects caused by the depreciation of the Japanese yen, which offset the negative impact of the change in model mix, the soaring raw material costs and the increased SG&A expenses.

Revenue from unaffiliated customers in financial services business increased 30.8% to JPY 188.0 billion (USD 1,595 million) from the corresponding period in 2005. Operating income increased 16.3% to JPY 51.8 billion (USD 440 million) from the corresponding period in 2005, due mainly to the positive impact of the increased profit attributable to higher revenue, the decreased SG&A expenses and the currency effects caused by the depreciation of the Japanese yen, which offset the negative impact of the increase in funding costs.

 

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Honda’s unit sales of power products was 2,911 thousand units, up by 11.0 % from the corresponding period in 2005. In Japan, unit sales totaled 264 thousand units, an increase of 10.5%. Overseas unit sales was 2,647 thousand units, an increased of 11.0%, due mainly to the increased unit sales in North America and Europe. Revenue from unaffiliated customers in power product and other businesses increased by 19.9% to JPY 202.4 billion (USD 1,717 million) from the corresponding period in 2005, due mainly to the increased unit sales of power products and the positive impact of the currency translation effects. Operating income was JPY 18.4 billion (USD 157 million), an increase of 29.1% from the corresponding period in 2005, due mainly to the positive impact of the increased profit attributable to higher revenue and the currency effects caused by the depreciation of the Japanese yen, which offset the negative impact of the increased SG&A expenses.

 

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This excerpt taken from the HMC 6-K filed Aug 22, 2006.

Business Segment

With respect to Honda’s sales for the fiscal first quarter by business segment, unit sales of motorcycles totaled 2,380 thousand units, a decrease of 7.8% from the corresponding period in 2005. Unit sales in Japan was 89 thousand units, a decrease of 6.3%. Overseas unit sales was 2,291 thousand units, a decrease of 7.8%*, due mainly to a decrease in unit sales of parts for local production at Honda’s affiliates accounted for under the equity method in Indonesia which was caused by a decline in the market environment due mainly to a rise of interest rate, offsetting healthy unit sales in Latin America. Revenue from unaffiliated customers increased 17.8%, to JPY 310.1 billion (USD 2,691 million) from the corresponding period in 2005, due mainly to the positive impacts of the currency translation effects and the change in model mix, offsetting the negative impact of decreased unit sales. Operating income increased by 27.4 % to JPY 13.1 billion (USD 114 million) from the corresponding period in 2005, due mainly to the positive impacts of the increased profits attributable to higher revenue, the change in sales price in Latin America and the currency effects caused by the depreciation of the Japanese yen, offsetting the negative impact of the increased SG&A expenses.

 


* Of the net sales of Honda-brand motorcycle products that are manufactured and sold by overseas affiliates accounted for under the equity method, those with respect to which parts for manufacturing were not supplied from Honda or such subsidiaries are not included in net sales and other operating revenue, in conformity with U.S. generally accepted accounting principles. Accordingly, these unit sales are not included in the financial results and forecasts. Such products amounted to approximately 500 thousand units for the quarter.

 

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Honda’s unit sales of automobiles was 896 thousand units, increased by 6.7% from the corresponding period in 2005. In Japan, unit sales decreased 6.6% to 156 thousand units. Overseas unit sales increased 10.0% to 740 thousand units, due mainly to the increased unit sales in North America attributable to good sales of, for example, the Civic and the Fit and the increase in unit sales of parts for local production at Honda’s affiliates accounted for under the equity method in China. Revenue from unaffiliated customers increased 13.5% to JPY 2,095.6 billion (USD 18,185 million) from the corresponding period in 2005, due to the positive impacts of the currency translation effects and the increased unit sales. Operating income increased 12.7% to JPY 150.0 billion (USD 1,302 million) from the corresponding period in 2005, due mainly to the positive impact of the increased profit attributable to higher revenue, the change in sales price in North America, the decreased R&D expenses and the currency effects caused by the depreciation of the Japanese yen, which offset the negative impact of the change in model mix, the soaring raw material costs and the increased SG&A expenses.

Revenue from unaffiliated customers in financial services business increased 30.9% to JPY 89.9 billion (USD 781 million) from the corresponding period in 2005, due mainly to the positive impacts of the currency translation effects and the growth of automobile business in North America. Operating income increased 47.4% to JPY 29.2 billion (USD 254 million) from the corresponding period in 2005, due mainly to the positive impact of the decreased SG&A expenses due to the reversal of the allowance for losses on lease residual values and credit losses, which was attributable to the increase in used-car prices, the increased profit attributable to higher revenue due to the increased finance subsidiaries-receivables from growth of business and the currency effects caused by the depreciation of the Japanese yen, which offset negative impact of increased funding costs.

Honda’s unit sales of power products was 1,724 thousand units, up by 16.3 % from the corresponding period in 2005. In Japan, unit sales totaled 137 thousand units, an increase of 13.2%. Overseas unit sales was 1,587 thousand units, an increased of 16.6%, due mainly to the positive impact of increased unit sales of general-purpose engines in North America and Europe. Revenue from unaffiliated customers in power product and other businesses increased by 20.0% to JPY 103.9 billion (USD 902 million) from the corresponding period in 2005, due mainly to the positive impacts of the currency translation effects and the increased unit sales of power products. Operating income was JPY 11.0 billion (USD 96 million), an increase of 56.9% from the corresponding period in 2005, due mainly to the positive impact of the increased profit attributable to higher revenue and the currency effects caused by the depreciation of the Japanese yen, which offset the negative impact of the increased SG&A expenses.

 

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This excerpt taken from the HMC 6-K filed May 18, 2006.

Business Segment

With respect to Honda’s sales in the fiscal year by business category, motorcycle unit sales totaled 10,271 thousand units, down 2.0% from the same period in 2005. Motorcycle unit sales in Japan decreased 2.6% to 368 thousand units, and overseas unit sales was 9,903 thousand units, which was down 2.0% from the same period in 2005, mainly due to a decrease in unit sales of parts for local production at affiliates accounted for under the equity method in Asia*. Revenue from sales to unaffiliated customers increased 11.7%, to JPY 1,225.8 billion (USD 10,435 million), due mainly to the positive impact of the currency translation effects and the change in model mix, offsetting negative impact of decreased unit sales. Operating income increased by 64.4% to JPY 113.9 billion (USD 970 million), due mainly to the positive impact of currency effects caused by the depreciation of the Japanese yen, increased profit attributable to higher revenue, continuing cost reduction effects and gain on “return”, offsetting the negative impact of the increase in SG&A and R&D expenses.

*Of the net sales of Honda-brand motorcycle products that are manufactured and sold by overseas affiliates accounted for under the equity method, those with respect to which parts for manufacturing were not supplied from Honda or such subsidiaries are not included in net sales and other operating revenue, in conformity with U.S. generally accepted accounting principles. Accordingly, these unit sales are not included in the financial results and forecasts. Such products amounted 2,600 thousand units for the fiscal year.

Honda’s unit sales of automobiles increased by 4.6% from the same period in 2005 to 3,391 thousand units. In Japan, unit sales of automobiles decreased 2.2% to 696 thousand units. Overseas unit sales increased 6.5% to 2,695 thousand units, due mainly to increased unit sales in North America. Revenue from sales to unaffiliated customers increased 14.9%, to JPY 8,004.6 billion (USD 68,142 million) during the period, due to the positive currency translation effects and increased unit sales mainly in North America and Europe. Operating income increased by 38.9% to JPY 628.3 billion (USD 5,349 million), due mainly to the positive impact of currency effects caused by the depreciation of the Japanese yen, an increase in profit attributable to higher revenue, continuing cost reduction effects and gain on “return”, which offset the negative impact of increase in SG&A and R&D expenses.

Revenue from sales to unaffiliated customers in the financial services business increased 20.0% to JPY 306.8 billion (USD 2,612 million), due to the growth of the automobile business in North America. Operating income increased 0.8% to JPY 90.5 billion (USD 771 million), due primarily to the positive impact of currency effects caused by the depreciation of the Japanese yen, higher revenue due to an increased finance-subsidiaries receivable from growth of business and decreased SG&A expenses which offset increased funding costs.

 

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Unit sales of power products in Japan totaled 487 thousand units, an increase of 12.7%. Overseas unit sales were 5,389 thousand units, an increase of 10.7%, and total unit sales of power products was 5,876 thousand units, up by 10.9 % from the same period in 2005. Increased unit sales, mainly in North America and Europe, was major contributing factor to this increase. Revenue from sales to unaffiliated customers in power product and other businesses increased by 11.3% to JPY 370.6 billion (USD 3,155 million), due mainly to increased unit sales. Operating income increased 86.3% to JPY 35.9 billion (USD 306 million), due mainly to positive currency effects caused by the depreciation of the Japanese yen, the increased profit attributable to higher revenue and gain on “return”, which offset the negative impact of the increase in SG&A expenses.

This excerpt taken from the HMC 6-K filed Feb 15, 2006.

Business Segment

 

With respect to Honda’s sales in the fiscal nine months by business category, motorcycle unit sales totaled 7,858 thousand units, up 1.2% from the same period in 2004. Motorcycle unit sales in Japan decreased 3.5% to 275 thousand units, and overseas unit sales was 7,583 thousand units, which was up 1.4% from the same period in 2004, mainly due to a increase in unit sales of parts for local production at affiliates accounted for under the equity method in Indonesia* and favorable sales in Thailand and Brazil. Revenue from sales to unaffiliated customers increased 8.1%, to JPY 834.4 billion (USD 7,067 million), due mainly to the positive currency translation impact and increased overseas unit sales. Operating income increased by 26.1% to JPY 53.3 billion (USD 452 million), due mainly to the positive impact of currency effects caused by the depreciation of the Japanese yen, increased profit from higher revenue and continuing cost reduction effects, offsetting the negative impact of the increase in R&D expenses.

 


* Net sales of Honda-brand motorcycle products that are 100% locally procured, manufactured and sold by overseas affiliates accounted for under the equity method are not included in net sales and other operating revenue, in conformity with U.S. generally accepted accounting principles. Accordingly, these unit sales are not included in the financial results and forecasts.
  For the fiscal nine months, the number of products 100% locally procured, manufactured and sold by affiliates in India and China increased to approximately 1,530 thousands units.

 

Honda’s unit sales of automobiles increased by 4.5% from the same period in 2004 to 2,490 thousand units. In Japan, unit sales of automobiles decreased 2.1% to 506 thousand units. Overseas unit sales increased 6.3% to 1,984 thousand units, due mainly to increased unit sales in North America. Revenue from sales to unaffiliated customers increased 13.0%, to JPY 5,754.5 billion (USD 48,738 million) during the period, due to the positive currency translation effects and increased overseas unit sales. Operating income increased by 6.5% to JPY 385.3 billion (USD 3,263 million), due mainly to the positive impact of currency effects caused by the depreciation of the Japanese yen, an increase in profit attributable to higher revenue and continuing cost reduction effects, which offset the increase in SG&A and R&D expenses.

 

Revenue from sales to unaffiliated customers in the financial services business increased 17.3% to JPY 224.0 billion (USD 1,897 million), due to the growth of the automobile business in North America. Operating income decreased 7.2% to JPY 66.6 billion (USD 564 million), due primarily to increased funding costs, which offset an increase in profit attributable to higher revenue.

 

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Unit sales of power products in Japan totaled 349 thousand units, an increase of 10.8%. Overseas unit sales were 3,408 thousand units, an increase of 6.5%, and total unit sales of power products was 3,757 thousand units, up by 6.9 % from the same period in 2004. Increased unit sales in all regions, especially in Europe, was major contributing factors to this increase. Revenue from sales to unaffiliated customers in power product and other businesses increased by 7.2% to JPY 261.3 billion (USD 2,213 million), due mainly to positive currency translation effects and the increased unit sales of power products. Operating income increased 55.5% to JPY 22.7 billion (USD 193 million), due mainly to positive currency effects caused by the depreciation of the Japanese yen and the increased profit attributable to higher revenue, which offset the negative impact of the increase in SG&A expenses.

 

This excerpt taken from the HMC 6-K filed Nov 17, 2005.

Business Segment

 

With respect to Honda’s sales in the fiscal first half year by business category, motorcycle unit sales totaled 5,070 thousand units, which decreased by 4.0% from the corresponding period in 2004. Motorcycle unit sales in Japan decreased 3.9% to 199 thousand units, and overseas unit sales were 4,871 thousand units, which was a decrease of 4.0% from the corresponding period in 2004, mainly caused by a decrease in unit sales of parts for local production at affiliates in India*, which offset an increase in unit sales of parts for local production at Indonesian affiliate. Revenue from sales to unaffiliated customers increased 3.9%, to JPY 550.9 billion (USD 4,867 million), due mainly to the positive currency translation impacts, offsetting the decrease in unit sales. Operating income increased by 7.4% to JPY 39.9 billion (USD 353 million), due mainly to the positive impacts of the depreciation of the yen, increased profits from the higher revenues and ongoing cost reduction efforts, offsetting the negative impact of the increase in R&D expenses.

 

* Net sales of Honda-brand motorcycle products that are procured locally 100%, manufactured and sold by overseas affiliates accounted for under the equity method are not included in net sales and other operating revenue, in conformity with U.S. generally accepted accounting principles. Accordingly, these unit sales are not included in the financial results and forecasts.

 

For the fiscal first half, the number of products 100% locally procured, manufactured and sold by affiliates in India and China increased to approximately 930 thousands units.

 

Honda’s unit sales of automobiles increased by 6.9% from the corresponding period in 2004 to 1,674 thousand units. In Japan, unit sales of automobiles increased 1.7% to 350 thousand units. Overseas unit sales increased 8.3% to 1,324 thousand units, due mainly to increased sales in North America. Revenue from sales to unaffiliated customers increased 11.6%, to JPY 3,738.6 billion (USD 33,030 million) during the period, due to the positive currency translation effects and increased unit sales. Operating income was JPY 234.2 billion (USD 2,069 million), which was almost the same level as the corresponding period in 2004, due mainly to the negative impacts in increase in SG&A and R&D expenses, which offset the positive currency effects caused by the depreciation of the yen, increased profits from higher revenues and ongoing cost reduction efforts.

 

Revenue from sales to unaffiliated customers in financial services increased 16.5% to JPY 143.7 billion (USD 1,270 million), due to the growth of the automobile business in North America. Operating income decreased 6.7% to JPY 44.6 billion (USD 394 million), due primarily to increased funding costs.

 

Unit sales of power products in Japan totaled 239 thousand units, an increase of 8.6%. Overseas unit sales were 2,384 thousand units, an increase of 5.9%, due primarily to increased unit sales in Asia, and total unit sales of power products were 2,623 thousand units, up by 6.1 % from the corresponding period in 2004. Revenue from sales to unaffiliated customers in power product and other businesses increased by 2.9% to JPY 168.9 billion (USD 1,492 million), due mainly to increased unit sales of power products. Operating income increased 18.0% to JPY 14.3 billion (USD 127 million), due mainly to increased profits from higher revenues, offsetting the negative impact of the increase in SG&A expenses.

 

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