Honda Announces Consolidated Financial Summary for the Fiscal Year Ended March 31, 2006 and Forecast for the Fiscal Year Ending March 31, 2007.Tokyo Tokyo (tō`kēō), city (1990 pop. 8,163,573), capital of Japan and of Tokyo prefecture, E central Honshu, at the head of Tokyo Bay. , Japan, Apr 26, 2006 - (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 honda a quick release metal eyelet for the end of a lariat. When the restrained animal is no longer required it is not necessary to slacken off the loop and pull it over the head—a very great advantage when working with wild cattle or unbroken horses. 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 fiscal year ended March 31, 2006, it achieved an all-time all-time adj. Exceeding all others up to the present time: an all-time speed skating record. all-time Adjective Informal 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 revenue in all business areas. Honda also realized an all-time record for 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. for the fiscal year, due mainly to increased revenues, cost reduction efforts, and the positive effect 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. , as well as the effect of "Daiko-Henjyo" (the return of the substitutional sub·sti·tu·tion n. 1. a. The act or an instance of substituting. b. The state of being substituted. 2. One that is substituted; a replacement. portion of employees' pension funds to the Japanese Japanese (jăp'ənēz`), language of uncertain origin that is spoken by more than 125 million people, most of whom live in Japan. There are also many speakers of Japanese in the Ryukyu Islands, Korea, Taiwan, parts of the United States, and government) which accounted for a gain 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. 138 billion. These factors offset an increase in selling, general and administrative (SG&A) expenses and research and development (R&D) expenses. Honda also realized an all-time record for income before income taxes, 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 , net income, and basic net income per common share for this fiscal year. 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. per common share rose by JPY 23 to JPY 60. Combined with the interim dividend of JPY 40, the total dividend to be paid for the entire fiscal year ended March 31, 2006 is JPY 100, an increase of JPY 35 compared to the previous fiscal year. Results for Fiscal Year Ended March 31, 2005 (*record high)
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(yen billions)
Year ended March 31,
2006 2005 Difference (change)
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Net sales and
other operating
revenue 9,907.9* 8,650.1 +1,257.8 +14.5%
Operating income 868.9* 630.9 +237.9 +37.7%
Income before
income taxes 814.6* 656.8 +157.8 +24.0%
Equity in income
of affiliates 99.6* 96.0 +3.5 +3.7%
Net income 597.0* 486.1 +110.8 +22.8%
Basic net income
per common share (Y) 648.67* 520.68 +127.99 +24.6%
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(Honda's average rates: JPY 113 = USD 1 JPY 138 = Euro 1)
I. Consolidated 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. : All-time record unit sales were realized in the automobile and power product business areas. Motorcycles: 10.271 million units (-2.0%); the decrease was due mainly to lower 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 2.6 million (+1.6 million ) Honda-brand motorcycles manufactured and sold by overseas affiliates accounted for under the equity method, are not included in the unit sales to conform 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. because they do not include any parts supplied by Honda Motor Co., Ltd. and its consolidated subsidiaries.> Automobiles: 3.391 million units (+4.6%); the increase was due to higher sales in overseas markets, mainly in North America North America, third largest continent (1990 est. pop. 365,000,000), c.9,400,000 sq mi (24,346,000 sq km), the northern of the two continents of the Western Hemisphere. . It was the seventh consecutive year of increased sales. Power Products: 5.876 million units (+10.9%); the increase was due primarily to sales growth in North America and Europe. It was the fifth consecutive year of increased sales. (Totals includes fully finished products made by Honda and its subsidiaries as well as unit sales of fully finished products and parts for local production by affiliates accounted for under the equity method.) II. Highlights Consolidated net sales and other operating revenue increased in all business areas and totaled JPY 9,907.9 billion (+14.5%), realizing an all-time record for the sixth consecutive year. Consolidated operating income totaled JPY 868.9 billion (+37.7%), the second consecutive year for an increase as well as an all-time record. The increased revenues, cost reduction effects, positive effect from the depreciation of the Japanese Yen, as well as the effect of the gain from the "Daiko-Henjyo" (+ JPY 138 billion) offset an increase in selling, general and administrative (SG&A) expenses and research and development (R&D) expenses. Income before income taxes increased to JPY 814.6 billion (+24.0%), achieving a fifth consecutive all-time record. Equity in income of affiliates totaled JPY 99.6 billion (+3.7%), achieving a sixth consecutive all-time record. Consolidated net income was JPY 597.0 billion (+22.8%), achieving a fifth consecutive all-time record. Consolidated net sales and other operating revenue for the fourth quarter of the fiscal year totaled JPY 2,833.7 billion (+20.6%). Consolidated operating income for the period was JPY 340.8 billion (+142.8%), consolidated income before income taxes was JPY 334.8 billion (+159.3%), equity in income of affiliates was JPY 22.7 billion (+16.3%), and consolidated net income totaled JPY 219.5 billion (+133.4%). The basic net income per common share was JPY 239.78 (+136.4%). (Consolidated operating income and consolidated income before income taxes reflect the effect of JPY 138 billion in a gain from the "Daiko-Henjyo", and consolidated net income reflects the effect of net income after tax relevant to the gain from the "Daiko-Henjyo".) Consolidated net sales and other operating revenue, operating income, income before income taxes, and net income were all-time record for any quarter, whereas equity in income of affiliates was an all-time record for the fourth fiscal quarter. III. Forecast for Fiscal Year Ending March 31, 2007 Honda aims to achieve a seventh consecutive all-time record for consolidated sales and other operating revenue for the fiscal year ending March 31, 2007, based on the unit sales plans of 10.84 million motorcycles, 3.72 million automobiles, and 5.88 million power products. (Approximately 3.36 million Honda-brand motorcycles manufactured and sold by overseas affiliates accounted for under the equity method, are not included in the sales plan total to conform with Generally Accepted Accounting Principles in the U.S. because they do not include any parts supplied by Honda Motor Co., Ltd. and its consolidated subsidiaries.) Honda will carry out its business operations Business operations are those activities involved in the running of a business for the purpose of producing value for the stakeholders. Compare business processes. The outcome of business operations is the harvesting of value from assets based on the goals described in the following chart with assumption of the average currency exchange rate of JPY 112 = U.S. dollar 1 (average rate for the first half of the fiscal year: JPY 113, latter half of the fiscal year: JPY 110) and JPY 132 = Euro 1 (first half: JPY 135, latter half: JPY 130)
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(yen billions)
Year ended March 31,
2007 2006 Difference (change)
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Net sales and
other operating
revenue 10,600.0 9,907.9 +692.0 +7.0%
Operating income 750.0 868.9 -118.9 -13.7%
Income before
income taxes 735.0 814.6 -79.6 -9.8%
Equity in income
of affiliates 103.0 99.6 +3.3 +3.4%
Net income 550.0 597.0 -47.0 -7.9%
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At the board of directors meeting held on April 26, 2006, Honda resolved a matter of stock split. A 1:2 stock split will be made for shareholders listed or recorded in the final register of shareholders and register of beneficial shareholders as at June 30, 2006. As of July 1, 2006, one share of the Company's common stock will be split into two. After the stock split, for the year ending March 31, 2007, Honda plans that the interim cash dividend of JPY 30 per share. It also projects that the year-end cash dividend will be JPY 30 per share. As a result, total cash dividends for the year ending March 31, 2007 are expected to be JPY 60 per share. Had the stock split not been carried out, the dividends would have been equal to JPY 60 per share for both interim and year-end dividends, which would have been an increase of JPY 20 per share for the interim dividend, as a result, an increase of JPY 20 per share for the year, to JPY 120. About Honda Motor Co., Ltd. Honda Motor Co., Ltd. (TSE: 7267)(NYSE: HMC)(LSE LSE - Language Sensitive Editor : HNDA.L) is one of the leading manufacturers of automobiles and power products and the largest manufacture of motorcycles in the world. Honda has always sought to provide genuine satisfaction to people worldwide. The result is more than 120 manufacturing facilities in 30 countries worldwide, producing a wide range of products, including motorcycles, ATVs, generators, marine engines, lawn and garden equipment and automobiles that bring the company into contact with over 19 million customers annually. For more information, please visit http://world.honda.com. Source: Honda Motor Co., Ltd. Contact: Honda Motor Co., Ltd. Corporate Communications Department corporate_pr@hm.honda.co.jp Copyright [c] 2006 JCN Newswire. All rights reserved. A division of Japan Corporate News Network K.K. |
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