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HONDA MOTOR CO., LTD. REPORTS UNAUDITED CONSOLIDATED FINANCIAL RESULTS FOR FISCAL SECOND QUARTER AND THE FIRST HALF ENDED SEPTEMBER 30, 1993

 TOKYO, Nov. 16 /PRNewswire/ -- Honda Motor Co., Ltd. today announced its unaudited consolidated financial results for the fiscal second quarter and half-year ended September 30, 1993.
 Second Quarter Results
 Honda's consolidated net income for the fiscal second quarter ended September 30, 1993 was Y3.2 billion ($31 million), down 63.9 percent from the corresponding three months last year. Net income per Common Share for the quarter totaled Y3.30 ($0.03) compared to Y9.18 for the same period a year ago. Net income per American Share, each representing two Common Shares, amounted to Y6.60 ($0.06) compared to Y18.36 for the corresponding three months last year.
 Consolidated net sales and other operating revenue for the quarter under review were Y955.1 billion ($9,038 million), decreasing 7.4 percent from the corresponding quarter a year ago. Although motorcycle sales showed a steady increase in North America and Asia outside Japan, a decline in automobile sales particularly in Europe, coupled with the rise in the value of the yen, negatively affected net revenue.
 Consolidated operating income declined 36.6 percent, to Y15.5 billion ($148 million). Despite the positive effect attained from our ongoing rationalization efforts and a decline in selling, general and administrative expenses, the impact of the stronger yen and a decline in revenue adversely affected earnings.
 Reviewing the second quarter revenue by business segment, Honda's motorcycle business generated revenue of Y137.8 billion ($1,311 million), down 2.4 percent from a year ago. Unit sales, on the other hand, were up by 9.0 percent, to 1,124,000 units, reflecting favorable market condition in North America and Asia. The decline in revenue was primarily due to a less favorable model mix.
 Honda's automobile business during the three-month period fell 8.7 percent, to Y750.7 billion ($7,140 million), particularly as a result of the higher yen. Unit sales, however, increased by 3.6 percent, to 460,000 units, reflecting a recovery of sales of smaller-size models in the U.S. market and favorable market conditions in other areas including Asia, South America and the Middle East.
 Revenue from other businesses amounted to Y66.5 billion ($633 million), a slight decline of 2.1 percent. While overall power product volume sales proved favorable, the effect of the higher yen, particularly in North America and Europe, led to the decline in revenue. Unit sales of power products for the quarter totaled 412,000 units, an increase of 17.4 percent from last year.
 First Half-Year Results
 Consolidated net income for the first six months ended September 30, 1993 total Y9.3 billion ($89 million), a decline of 62.7 percent from the fiscal first half last year. Net income per Common Share for the period was Y9.54 ($0.09) compared to Y25.59 for the corresponding six months a year earlier. Net income per American Share, each representing two Common Shares, amounted to Y19.08 ($0.18) compared to Y51.18 for the same period last year.
 Consolidated net sales and other operating revenue for the six months totaled Y1,874.7 billion ($17,829 million), a decline of 12.5 percent from a year ago. While revenue from Honda's motorcycle business continued to show a steady increase owing primarily to favorable sales in North America and Asian markets, lower sales of automobiles in Japan, North America and Europe together with the strengthened yen, had a negative impact on net sales.
 Although the positive effect gained from the Company's continued cost cutting efforts, decreases in selling, general and administrative expenses and lower research and development expenses, helped, in part, to offset a decline in operating income for the period, lower revenue in addition to the stronger yen resulted in a 42.3 percent decline in consolidated operating income, amounting to Y37.8 billion ($360 million).
 Furthermore, despite an increase in equity in income of affiliates, Honda's higher income tax rate consequently contributed to the decrease in net income.
 Reviewing the six-month period revenue by business segment, the motorcycle business revenue declined 2.5 percent, amounting to Y283.8 billion ($2,699 million), whereas unit sales totaled 2,123,000 units, a rise of 10.4 percent from a year ago. Increased volume sales of smaller-sized motorcycles in Asian markets was the principal reason for the slight decline in revenue and the increase in unit sales.
 The automobile business revenue for the first half-year declined 15.3 percent, totaling Y1,455.6 billion ($13,844 million). Lower sales in Japan, North America and Europe, coupled with the higher yen, were principally responsible for the decline, while sales in Asian countries showed continued strength. Unit sales of automobiles totaled 874,000 units, dropping 4.0 percent.
 Honda's other businesses registered a 1.9 percent increase in revenue, amounting to Y135.2 billion ($1,286 million). The Company's trading and finance businesses helped increase overall revenue for this segment. Unit sales of power products totaled 761,000 units, a 17.1 percent increase.
 Revised Forecast of Fiscal Year Ending March 31, 1994
 Noting the many unpredictable factors in the Company's business environment, the Company's management expects consolidated net income for the latter half of the fiscal year ending March 31, 1994 to amount to approximately Y8.0 billion, or a total of Y17.3 billion for the full year. This downward revision in net income from the original forecast of Y23.0 billion for the full year made in May 1993 is attributable to the first half results, which were lower than the Company's original expectations, due primarily to the rise in the value of the yen, which was much faster than our initial estimate, and prolonged sluggishness of automobile sales, particularly in Japan and Europe. Management has also revised downward its forecast of consolidated net sales and other operating revenue for the current fiscal year from its original estimate of Y4,000.0 billion in May 1993 to Y3.774.7 billion, with the latter half of the fiscal year expected to be approximately Y1,900.0 billion. These forecasts are based on the assumption that exchange rates of the yen against major currencies will remain at current levels.
 HONDA MOTOR CO., LTD.
 Consolidated Financial Summary


(For the three months and six months ended September 30, 1993 and 1992)
 Financial Highlights
 (In millions of Yen)
 Three months Three months Six months Six months
 ended ended ended ended
 Sept. 30, Sept. 30, Sept. 30, Sept. 30,
 1993 1992 1993 1992
 Net sales and other
 operating revenue Y955,113 Y1,031,127 Y1,874,760 Y2,143,089
 Operating income 15,580 24,567 37,870 65,608
 Income before income
 taxes 7,173 22,270 22,503 56,450
 Net income 3,236 8,963 9,328 24,990
 (In Yen)
 Net income per
 Common Share Y3.30 Y9.18 Y9.54 Y25.59
 American Share 6.60 18.36 19.08 51.18
 (In thousands of U.S. Dollars)
 Three months Six months
 ended ended
 Sept. 30, 1993 Sept. 30, 1993
 Net sales and other
 operating revenue $9,083,338 $17,829,387
 Operating income 148,169 360,152
 Income before income taxes 68,217 214,009
 Net income 30,775 88,711
 (In U.S. Dollars)
 Net income per
 Common Share $0.03 $0.09
 American Share 0.06 0.18
 -0- 11/16/93
 /CONTACT: Takeshi Sumita of Honda, 212-765-3804/


CO: Honda Motor Co. ST: IN: AUT SU: ERN

WB -- NY066X -- 5182 11/16/93 15:03 EST
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Date:Nov 16, 1993
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