Honda Announces Consolidated Financial Summary for the Fiscal First Quarter Ended June 30, 2005.Tokyo, Japan, July 27, 2005 - (JCN JCN Japan Corporate News JCN Journal of Cognitive Neuroscience JCN Journal of Cardiovascular Nursing JCN Journal of Christian Nursing JCN Job Control Number JCN Journal of Child Neurology JCN joint communications network (US DoD) Newswire) - Honda Motor Co., Ltd. (TSE See Tokyo Stock Exchange. TSE 1. See Tokyo Stock Exchange (TSE). 2. See Toronto Stock Exchange (TSE). : 7267; NYSE NYSE See: New York Stock Exchange : HMC HMC Harvey Mudd College (Claremont, CA) HMC Harborview Medical Center (Seattle, Washington) HMC Hosted Messaging and Collaboration HMC Hoffman Modulation Contrast ) realized a 5th consecutive an all-time record for consolidated net sales Net Sales The amount a seller receives from the buyer after costs associated with the sale are deducted. Notes: This amount is calculated by subtracting the following items from gross sales: merchandise returned for credit, allowances for damaged or missing goods, freight and other operating revenue operating revenue Revenue from any regular source. Revenue from sales is adjusted for discounts and returns when calculating operating revenue. Compare other revenue. for the fiscal 1st quarter due to increased domestic and overseas sales. Operating income Operating Income The profit realized from a business' own operations. Notes: This would not include income from things such as investments in other firms. Also referred to as operating profit or recurring profit. increased due to increased profit from higher revenue and cost reduction effects despite an increase in selling, general and administrative (SG&A) expenses and research and development (R&D) expenses. Income before income taxes decreased mainly due to a change in derivative instruments Derivative instruments Contracts such as options and futures whose price is derived from the price of an underlying financial asset. , as a result of a drop in long-term interest rates. Net income for the period decreased by 3.1%, although an increase in equity in income of affiliates This refers to equity (income) generated from strategic investments in consolidated or unconsolidated affiliate companies, i.e. investments in which the investing company has significant influence over the operating and financial policies of the investee (the legal entity into which an was realized. Results for Fiscal First Quarter Ended June 30, 2005 (*record high for fiscal 1st quarter)
(yen billions)
First Quarter ended June 30, Difference(% change)
2004 2005
Net sales and other
operating revenue 2,073.1 2,264.5 +191.4 (+9.2)
Operating income 159.9 170.3 +10.4 (+6.5)
Income before
income taxes 174.0 144.3 -29.7 (-17.1)
Equity in income
of affiliates 18.8 21.1 +2.3 (+12.3)
Net income 114.2 110.6 -3.5 (-3.1)
Basic net income per
common share (yen) 121.65 119.75 -1.90 (-1.6)
(Honda's average rates: JPY JPY In currencies, this is the abbreviation for the Japanese Yen. Notes: The currency market, also known as the Foreign Exchange market, is the largest financial market in the world, with a daily average volume of over US $1 trillion. 108 = USD USD In currencies, this is the abbreviation for the U.S. Dollar. Notes: The currency market, also known as the Foreign Exchange market, is the largest financial market in the world, with a daily average volume of over US $1 trillion. 1 JPY 136 = Euro 1) Highlights - Record unit sales unit sales Sales measured in terms of physical units rather than dollars. Unit sales data are often used by financial analysts when evaluating the health of a company. were realized in the automobile and power product business areas. (Totals include fully finished products made by Honda and its subsidiaries as well as unit sales of parts for local production at affiliates accounted for under the equity method.) Motorcycle sales totaled 2.581 million units, which is roughly equivalent to last year's pace, mainly consisting of a decrease in sales in North America and an increase in sales in Asia. (This does not include the approximately 370 thousand motorcycles with local procurement rates of 100% which were produced and sold by affiliates in China and India, in conformity with U.S. generally accepted accounting principles The standard accounting rules, regulations, and procedures used by companies in maintaining their financial records. Generally accepted accounting principles (GAAP) provide companies and accountants with a consistent set of guidelines that cover both broad accounting .) In the automobile business, an increase in sales in each region resulted in a sales total of 840 thousand units (+8.8%). In the power product business, sales increased to 1.482 million units (+6.8%), primarily due to sales increases in North America and Asia. -Consolidated net sales increased to JPY 2,264.5 billion (+9.2%), mainly due to an increase in domestic and overseas sales. This represents an all-time record for the first quarter for the 5th consecutive year. -Operating income increased to JPY 170.3 billion (+6.5%) , reflecting increased profit from higher revenue and cost reduction effects despite an increase in SG&A expenses and R&D expenses. -Income before income taxes decreased to JPY 144.3 billion (-17.1%), primarily due to a change in derivative instruments, as a result of a drop in long-term interest rates. -Net income for the period decreased to JPY 110.6 billion (-3.1%), although an increase in equity in income of affiliates (+JPY 2.3 billion , +12.3%) was realized. Forecasts for Fiscal Year Ending March 31, 2006 A 6th consecutive all-time record is forecast for consolidated net sales and other operating revenue based on a unit sales plan of 10.095 million motorcycles, 3.415 million automobiles and 5.81 million power products. (Unit sales of motorcycles, with local procurement rates of 100% which are produced and sold by affiliates in China and India, are expected to increase by 2.45 million units to 3.45 million units, but are not included in the sales plan total in conformity with U.S. generally accepted accounting principles.) The consolidated forecast for the fiscal year ending March 31, 2006 is as follows, based on average exchange rates of JPY 106 = U.S. dollar 1; JPY 132 = Euro 1 (second half of fiscal year: JPY 105 = U.S. dollar 1; JPY 130 = Euro 1.)
(yen billions)
Forecast for
Year ended year ending Difference Oct. 27, 2004
March 31, 2005 March 31, 2006 (% change) forecast
Net sales and
other operating
revenue 8,650.1 9,430.0 +779.8 (+9.0) 9,300.0
Operating income 630.9 665.0 +34.0 (+5.4) 650.0
Income before
income taxes 656.8 620.0 -36.8 (-5.6) 615.0
Equity in income
of affiliates 96.0 91.0 -5.0 (-5.3) 77.0
Net income 486.1 470.0 -16.1 (-3.3) 450.0
(Honda's average rates: JPY 106 = U.S. dollar 1 JPY 132 = Euro 1) Copyright [c] 2005 JCN Newswire. All rights reserved. A division of Japan Corporate News Network K.K. |
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