Honda’s Year-End Cycle Sales Up 13.9%
April 26, 2005
Filed under Uncategorized
Japan’s Honda Motor Co., Ltd. says consolidated net income for the fiscal fourth quarter ended March 31, 2005, was JPY 94.0 billion ($876 million), up 26.9% from the corresponding period in 2004. Basic net income per Common Share for the quarter was JPY 101.43 ($0.94), up 29.3% from JPY 78.47 during last year’s fourth quarter. Two of Honda’s American Depositary Shares represent one Common Share.
Honda’s fourth quarter revenue was JPY 2,349.5 billion ($21.879 billion), up 9.5% compared to last year’s fourth quarter. Consolidated operating income for the fiscal fourth quarter totaled JPY 140.3 billion ($1.307 billion), up 24.3% compared to the corresponding period in 2004.
Honda says it sold 2.716 million motorcycles during the fourth quarter, up 3.7% from the corresponding period in 2004. While unit sales in Japan decreased 9.7% to 93,000 units, export unit sales increased 4.2% to 2.623 million units, due mainly to increased sales of parts to affiliates in Indonesia, and favorable sales in Thailand, Philippines and Brazil.
In North America, fourth quarter revenue from all operations increased 14.6% to JPY 1,284.2 billion ($11.959 billion). Operating income in North America increased 587% to JPY 73.6 billion ($686 million) from the corresponding period of the previous year, a rise Honda says is due primarily to the positive impact of increased profit from higher sales and decrease in quality-related expenses, offsetting the negative currency effect of depreciation of the U.S. dollar.
Honda’s consolidated net income for the year ended March 31, 2005, was JPY 486.1 billion ($4.527 billion), up 4.7% from the previous year. Basic net income per Common Share for the year was JPY 520.68 ($4.85), compared to JPY 486.91 for the previous year.
The company posted year-end revenue of JPY 8,650.1 billion ($80.549 billion), up 6.0% from the previous year. Consolidated operating income for the year was JPY 630.9 billion ($5.875 billion), up 5.1% compared to the previous year.
Honda’s motorcycle sales increased 13.9% to 10.482 million units. Overseas unit sales increased 14.8% to 10.104 million, due mainly to strong sales in Indonesia and India, and sales in Japan decreased 6.2% to 378,000 units.
In North America, revenue from all products was JPY 4,705.5 billion ($43.817 billion), up 0.7% from the prior year. Operating income in North America increased by 3.5% to JPY 321.1 billion ($2.991 billion).
Honda says its results were affected by depreciation of the U.S. dollar and research and development expenses. The company said operating income was up as a result of increased profit from higher revenue, continuing cost reduction effects and decrease in selling, general and administrative expenses.