Honda Announces Consolidated Financial Summary for the Fiscal First Half Ended September 30, 2005.Tokyo, Japan, Oct 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 ) today announced that in the first half of the current fiscal year, it realized a fifth consecutive 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. due to increased sales in each business area of automobiles, motorcycles and power products. Consolidated 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. was almost same level as the corresponding period in 2004, mainly consisting of increased revenues, cost reduction effects, positive effects from the depreciation of the Japanese Yen “Yen” redirects here. For the other use, see Yen (disambiguation). “JPY” redirects here. For the Australian singer with the same moniker, see John Paul Young. . These factors offset an increase in selling, general and administrative (SG&A) expenses and research and development (R&D) expenses. Honda's consolidated net income was a record high for the fifth consecutive fiscal first half. The forecast for the entire fiscal year has been revised upwards and Honda aims to set a sixth consecutive all-time record for net sales and other operating revenue as well as a fifth consecutive all-time record for net income. (In the same period of the previous fiscal year, Honda incurred an additional tax of approximately 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. 11.7 billion due to a reassessment of transfer pricing Transfer pricing refers to the pricing of goods and services within a multi-divisional organization, particularly in regard to cross-border transactions. For example, goods from the production division may be sold to the marketing division, or goods from a parent company may be related to its motorcycle operations in Brazil.) The interim dividend per common share increased by 12 yen to a total of 40 yen. Combined with the year-end dividend Year-end dividend A special dividend declared at the end of a fiscal year that usually represents distribution of higher-than-expected company profits. year-end dividend See final dividend. of 40 yen, also increased by 3 yen, the total dividend to be paid for the entire fiscal year is 80 yen, an increase of 15 yen compared to the previous fiscal year. Results for Fiscal First Quarter Ended June 30, 2005 (*record high for fiscal 1st quarter)
(yen billions)
First Half ended Sept. 30, Difference(% change)
2004 2005
Net sales and other
operating revenue 4,166.7 4,602.2* +435.5 (+10.5)
Operating income 332.9 333.0 +0.1 (+0.0)
Income before
income taxes 339.6 313.7 -25.9 (-7.6)
Equity in income
of affiliates 47.1 47.2* +0.0 (+0.2)
Net income 241.3 244.3* -2.9 (+1.2)
Basic net income per
common share (yen) 257.35 264.64 +7.29 (+2.8)
(Honda's average rates: JPY 110 = 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 135 = Euro 1) 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.) Motorcycles: 5.07 million units (-4.0%); the decrease was due primarily to the decreased sales of parts for overseas production bound for affiliated companies Affiliated Companies A situation that occurs when one company owns a minority interest (less than 50%) in another company. Also refers to companies that are related to each other in some way. Notes: An affiliated company is sometimes referred to as a subsidiary. in Asia. (Approximately 930,000 motorcycles with local procurement rates of 100% which were procured and sold by affiliates in China and India are not included in the financial results to be in conformity with 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 U.S.) Automobiles: 1.674 million units (+6.9%); the increase was mainly due to an increased sales in North America. Power Products: 2.623 million units (+6.1%); the increase was due primarily to sales growth in Asia. - Consolidated net sales and other operating revenue rose to JPY 4,602.2 billion (+10.5%), a fifth consecutive all-time record, due to increased sales in all business areas. - Consolidated operating income totaled JPY 333.0 billion, almost same level as the corresponding period in 2004, mainly consisting of increased revenues, cost reduction effects, positive effects from the depreciation of the Japanese Yen. These factors offset an increase in selling, general and administrative (SG&A) expenses and research and development (R&D) expenses. - Income before income taxes decreased to JPY 313.7 billion (-7.6%), primarily due to a change in the fair value of derivative instruments Derivative instruments Contracts such as options and futures whose price is derived from the price of an underlying financial asset. mainly to hedge effects from the exchange rate fluctuation and interest rate fluctuation. - Consolidated net income increased to JPY 244.3 billion (+1.2%), an all-time record for the first half. - Consolidated net sales and other operating revenue for the second quarter of the fiscal year totaled JPY 2,337.6 billion (+11.7%), a fifth consecutive all-time record. Consolidated operating income for the period was JPY 162.6 billion (-5.9%), consolidated income before income taxes was JPY 169.3 billion (+2.3%) and consolidated net income totaled JPY 133.7 billion (+5.2%). Forecasts for Fiscal Year Ending March 31, 2006 A sixth consecutive all-time record is forecast for consolidated net sales and other operating revenue based on all-time record unit sales plans for motorcycles 10.570 million units, automobiles 3.425 million units and power products 5.86 million units. (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 1.86 million units to a total of 2.86 million units, but are not included in the sales plan total and financial forecasts to be in conformity with Generally Accepted Accounting Principles in the U.S.) Honda aims to achieve its fifth consecutive all-time record for consolidated net income in the current fiscal year.
(yen billions)
Forecast for
Year ended year ending Difference July 27, 2005
March 31, 2005 March 31, 2006 (% change) forecast
Net sales and
other operating
revenue 8,650.1 9,600.0 +949.8 (+11.0) 9,430.0
Operating income 630.9 675.0 +44.0 (+7.0) 665.0
Income before
income taxes 656.8 655.0 -1.8 (-0.3) 620.0
Equity in income
of affiliates 96.0 94.0 -2.0 (-2.1) 91.0
Net income 486.1 490.0 +3.8 (+0.8) 470.0
(Honda's average rates for FY2006: JPY 110 = U.S. dollar 1 / JPY 135 = Euro 1) (Honda's average rates for H2 FY2006: JPY 110 = U.S. dollar 1 / JPY 135 = Euro 1) Copyright [c] 2005 JCN Newswire. All rights reserved. A division of Japan Corporate News Network K.K. |
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