Currency Fluctuations Deteriorate Honda Results
February 1, 2005
Filed under Features
Japan’s Honda Motor Co. Ltd. says profit from increased sales during its third quarter and nine-month period ended December 31, 2004, was deteriorated by currency fluctuations.
Honda says consolidated net income for the fiscal third quarter was JPY 150.7 billion ($1.447 billion) or JPY 161.78 ($1.55) per common share, down from JPY 158.66 per common share for the corresponding period in 2003.Two of Honda’s American depositary shares represent one common share.
Consolidated net sales and other operating revenue for the fiscal third quarter was JPY 2,133.8 billion ($20.476 billion), up 7.1% from the corresponding period in 2003. Honda estimates that had the exchange rate of yen remained unchanged from the same period in 2003, revenue for the quarter would have increased by approximately 8.5%.
Third quarter motorcycle unit sales were 2.483 million units, an increase of 4.9% from the corresponding period in 2003. Unit sales in Japan decreased 9.3% to 78,000 units while overseas unit sales increased 5.4% to 2.405 million units, due mainly to increased business in Asia, Europe and Brazil.
Honda’s consolidated net income for the nine-month period ended December 31, 2004, was JPY 392.1 billion ($3.763 billion), an increase of 0.5% from the previous year.
Basic net income per common share for the fiscal nine months was JPY 418.99($4.02), compared with JPY 407.87 for the corresponding period a year ago. Revenue for the fiscal nine months amounted to JPY 6,300.5 billion ($60.460 billion), an increase of 4.7% from last year.
Motorcycle unit sales during the nine-month period increased 17.9% to 7.766 million units. Of them, unit sales in Japan decreased 5.0% to 285,000 units, while overseas unit sales increased 19.0% to 7.481 million, due mainly to strong sales in Asia.