RNS Number:2204Z
Honda Motor Co Ld
29 July 2002
HONDA MOTOR CO., LTD. REPORTS
UNAUDITED CONSOLIDATED FINANCIAL RESULTS
FOR THE FISCAL FIRST QUARTER
ENDED JUNE 30, 2002
Tokyo, July 29, 2002--- Honda Motor Co., Ltd. today announced its unaudited
consolidated financial results for the fiscal first quarter ended June 30, 2002.
Honda's consolidated net income for the fiscal first quarter ended June 30, 2002
totaled JPY 107.5 billion (USD 900 million), an increase of 20.4% from the
corresponding period in 2001. Basic net income per Common Share for the quarter
amounted to JPY 110.42 (USD 0.92), compared to JPY 91.72 for the corresponding
period in 2001. Two of Honda's American Depositary Shares represent one Common
Share.
Consolidated net sales and other operating revenue (herein referred to as
"revenue") for the fiscal first quarter amounted to JPY 1,936.8 billion (USD
16,208 million), an increase of 10.0% from the corresponding period in 2001. In
addition to higher sales. currency translation effects, which had a positive
impact on foreign currency-denominated revenue from Honda's overseas
subsidiaries, translated into yen, contributed to this increase.
Honda estimates that had the exchange rate of yen remained unchanged from the
same period in 2001, revenue for the quarter would have increased by
approximately 6.5%.
Consolidated operating income for the fiscal first quarter totaled JPY 170.8
billion (USD 1,429 million), an increase of 12.8% compared to the corresponding
period in 2001. This increase in operating income was due primarily to an
increase in revenue contributed by higher unit sales of motorcycles, automobiles
and power products, the positive impact of the depreciation of the yen and
Honda's ongoing cost reduction efforts, which offset increases in selling,
general and administrative expenses and research and development expenses.
Consolidated income before income taxes for the quarter totaled JPY 163.7
billion (USD 1,370 million), an increase of 20.7% from the corresponding period
in 2001.
With respect to Honda's sales in the fiscal first quarter by business category,
motorcycle unit sales increased by 33.4% to 1,827,000 units, and revenue
increased 12.1%, to JPY 251.8 billion (USD 2,108 million). This increase in unit
sales was due primarily to higher sales in Asia outside of Japan and North
America.
Honda's unit sales of automobiles increased by 8.8% to 694,000 units, due
primarily to strong sales in North America contributed by the newly introduced
Pilot SUV, CR-V and Acura RSX. Revenue increased 9.1%, to JPY 1,551.4 billion
(USD 12,983 million) during the quarter.
Unit sales of power products totaled 1,121,000 units, an increase of 19.1%
compared to the corresponding period in 2001. Higher sales of general-purpose
engines in North America and Japan were the major factor for this increase in
unit sales. Revenue from other businesses, including the power product business
and financial services, increased by 17.2% to JPY 133.5 billion (USD 1,118
million) due mainly to higher sales in power products business and higher
revenue from Honda's finance subsidiaries.
(1) Unit Sales Breakdown
(In thousands of units)
Three months Three months
ended ended
June 30, 2002 June 30, 2001
MOTORCYCLES
Japan 94 109
(motorcycles included above) (94) (109)
North America 119 110
(motorcycles included above) (59) (58)
Europe 98 104
(motorcycles included above) (96) (102)
Others 1,516 1,047
(motorcycles included above) (1,511) (1,045)
Total 1,827 1,370
(motorcycles included above) (1,760) (1,314)
AUTOMOBILES
Japan 213 207
North America 367 328
Europe 46 43
Others 68 60
Total 694 638
POWER PRODUCTS
Japan 128 82
North America 517 433
Europe 267 232
Others 209 194
Total 1,121 941
Explanatory Note:
1. The geographical breakdown of net sales is based on the location of
affiliated and unaffiliated customers.
2. Previously, domestic sales of general-purpose engines to customers who will
install them in products that are subsequently exported were recorded as
overseas sales of power products. However, as of the term under review, such
sales are recorded in domestic power products sales. Prior year's figures
have been restated to reflect this change.
(2) Net Sales Breakdown
(In millions of Yen)
Three months Three months
ended ended
June 30, 2002 June 30, 2001
MOTORCYCLE BUSINESS
Japan 25,533 ( 10.1%) 27,736 ( 12.3%)
North America 74,613 ( 29.6%) 67,010 ( 29.8%)
Europe 56,420 ( 22.4%) 53,355 ( 23.7%)
Others 95,299 ( 37.9%) 76,590 ( 34.2%)
Total 251,865 ( 100.0%) 224,691 ( 100.0%)
AUTOMOBILE BUSINESS
Japan 376,919 ( 24.3%) 410,871 ( 28.9%)
North America 955,200 ( 61.6%) 830,841 ( 58.4%)
Europe 93,375 ( 6.0%) 78,826 ( 5.5%)
Others 125,917 ( 8.1%) 101,276 ( 7.2%)
Total 1,551,411 ( 100.0%) 1,421,814 ( 100.0%)
OTHERS
Japan 31,768 ( 23.8%) 28,477 ( 25.0%)
North America 79,269 ( 59.4%) 64,182 ( 56.3%)
Europe 14,700 ( 11.0%) 12,820 ( 11.3%)
Others 7,823 ( 5.8%) 8,451 ( 7.4%)
Total 133,560 ( 100.0%) 113.930 ( 100.0%)
TOTAL
Japan 434,220 ( 22.4%) 467,084 ( 26.5%)
North America 1,109,082 ( 57.3%) 962,033 ( 54.6%)
Europe 164,495 ( 8.5%) 145,001 ( 8.2%)
Others 229,039 ( 11.8%) 186,317 ( 10.7%)
Total 1,936,836 ( 100.0%) 1,760,435 ( 100.0%)
Explanatory Note:
1. However, such sales are recorded in domestic power products sale.
2. Net sales of others including revenue from sales of power products and
related parts, leisure businesses, trading and financial services.
3. Revenue from domestic sales, of general-purpose engines to customers who
install them in products that are subsequently exported is recorded as
domestic revenue in Others.
Prior year's figures have been restated to reflect this change.
(3) Consolidated Financial Summary
Financial Highlights (In millions of Yen)
Three months Three months
ended % ended
June 30, 2002 Change June 30, 2001
Net sales and other
operating revenue 1,936,836 10.0% 1,760,435
Operating income 170,823 12.8% 151,445
Income before income taxes 163,704 20.7% 135,672
Net income 107,598 20.4% 89,378
(In Yen)
Basic net income per
Common Share 110.42 91.72
American Share 55.21 45.86
(In millions of U.S. Dollars)
Three months
ended
June 30, 2002
Net sales and other 16,208
operating revenue
Operating income 1,429
Income before income taxes 1,370
Net income 900
(In U.S. Dollars)
Basic net income per
Common Share 0.92
American Share 0.46
(4) Consolidated Statements of Income and Retained Earnings (Unaudited)
(In millions of Yen)
Three months Three months
ended ended
June 30, 2002 June 30, 2001
Net sales and other
operating revenue 1,936,836 1,760,435
Operating costs and expenses:
Cost of sales 1,318,856 1,220,245
Selling, general and
administrative 339,134 294,620
Research and development 108,023 94,125
Operating income 170,823 151,445
Other income:
Interest 2,366 2,284
Other 16,036 3,078
Other expenses:
Interest 4,320 5,015
Other 21,201 16,120
Income before
income taxes 163,704 135,672
Income taxes 67,919 55,057
Income before equity in
income of affiliates 95,785 80,615
Equity in income of affiliates 11,813 8,763
Net income 107,598 89,378
Retained earnings:
Balance at beginning of period 2,765,600 2,428,293
Cash dividends paid (14,616) (11,693)
Transfer to legal reserves (43) (448)
Balance at end of period 2,858,539 2,505,530
(In Yen)
Basic net income per
Common Share 110.42 91.72
American Share 55.21 45.86
5 Consolidated Balance Sheets
(In millions of Yen)
Assets
June 30,2002 March 31, 2002 June 30, 2001
(Unaudited) (Audited) (Unaudited)
Current assets:
Cash and cash equivalents 492,547 609,441 389,847
Trade accounts and notes
receivables 366,924 452,208 401,975
Finance subsidiaries-
receivables, net 903,205 995,087 730,656
Inventories 638,409 644,282 638,945
Deferred income taxes 177,005 182,788 163,829
Other current assets 209,485 204,538 178,836
Total current assets 2,787,575 3,088,344 2,524,088
Finance subsidiaries-
receivables, net 1,815,320 1,808,861 1,567,212
Investments and advances 397,207 395,495 382,699
Property, plant
and equipment, at cost:
Land 329,395 318,208 302,567
Buildings 908,063 920,106 836,612
Machinery and equipment 2,006,414 2,048,244 1,898,938
Construction in progress 86,848 82,610 116,018
3,330,720 3,369,169 3,154,135
Less accumulated
depreciation 1,968,713 1,979,455 1,894,913
Net property,
plant and equipment 1,362,007 1,389,713 1,259,222
Other assets 248,785 258,382 155,293
Total assets 6,610,894 6,940,795 5,888,514
(In millions of Yen)
Liabilities and Stockholders' Equity
June 30,2002 March 31, 2002 June 30, 2001
(Unaudited) (Audited) (Unaudited)
Current liabilities:
Short-term debt 887,540 1,035,069 1,073,015
Current portion of
long-term debt 207,696 308,014 289,919
Trade payables 772,565 840,957 742,225
Accrued expenses 637,092 678,118 556,995
Income taxes payable 50,664 61,244 70,046
Other current liabilities 192,043 186,657 138,107
Total current
liabilities 2,747,600 3,110,059 2,870,307
Long-term debt 801,824 716,614 386,778
Other liabilities 536,935 540,181 308,744
Total liabilities 4,086,359 4,366,854 3,565,829
Stockholders' equity:
Common stock 86,067 86,067 86,067
Capital surplus 172,529 172,529 l72,529
Legal reserves 29,012 28,969 28,377
Retained earnings 2,858,539 2,765,600 2,505,530
Adjustments from
foreign currency
translation (443,332) (300,081) (405,981)
Net unrealized gains
on marketable equity
securities 9,613 8,730 17,845
Minimum pension
liabilities adjustment (187,824) (187,824) (81,682)
Accumulated other (621,543) (479,175) (469,818)
comprehensive income
(loss)
Treasury stock (69) (49) -
Total stockholders' 2,524,535 2,573,941 2,322,685
equity
Total liabilities
and stockholders' equity 6,610,894 6,940,795 5,888,514
(6) Segment Information
(A) Business Segment Information
For the three months ended June 30, 2001
(In millions of yen)
Corporate
Motor Auto- assets
cycle mobile Financial Other and
Business Business Services Businesses Total Eliminations Consolidated
Net sales and other
operating revenue:
Sales to
unaffiliated customers 251,865 1,551,411 58,010 75,550 1,936,836 - 1,936,836
Inter segment sales 0 0 1,392 3,287 4,679 (4,679) -
Total 251,865 1,551,411 59,402 78,837 1,941,515 (4,679) 1,936,836
Cost of sales,
S.G.A. and R&D expenses 239,341 1,414,467 42,279 74,605 1,770,692 (4,679) 1,766,013
Operating income 12,524 136,944 17,123 4,232 170,823 0 170,823
Explanatory Notes:
1. Segmentation of Business
Business segment is based on Honda's business organization and the
similarity of the principal products included within each segment as
well as the relevant markets for such products.
2. Principal products of each segment
Business Sales Principal Products
Motorcycle Motorcycles, all-terrain Large-size motorcycles,
vehicles (ATV), personal mid-size motorcycles,
watercraft and relevant motorized bicycles,
parts all-terrain vehicles
(ATV), personal
watercraft
Automobile Automobiles and relevant Compact cars, sub-
parts compact cars, mini-
vehicles
Financial Services Financial and insurance services N/A
Other Power products and relevant Power tillers,generators,
parts and others general purpose engines,
lawn mowers, outboard
engines
(B) Geographical Segment Information
The geographical segmentation is based on the location where sales originated.
For the six months ended June 30, 2002
(In millions of yen)
Corporate assets
and
Japan North America Europe Others Total Eliminations Consolidated
Net sales and other
operating revenue:
Sales to
unaffiliated customers 490,042 1,112,105 164,116 170,573 1,936,836 - 1,936,836
Transfers between
geographical segments 461,738 36,101 26,665 4,249 528,753 (528,753) -
Total 951,780 1,148,206 190,781 174,822 2,465,589 (528,753) 1,930,836
Cost of sales,
S.G.A. and R&D expenses 908,720 1,036,933 193,789 159,909 2,299,351 (533,338) 1,766,013
Operating income (losses) 43,060 111,273 (3,008) 14,913 166,238 4,585 170,823
(C) Overseas Sales
For the year ended March 31, 2002 (in Millions of Yen)
North America Europe Others Total
Overseas Sales 1,109,082 164,495 229,039 1,502,616
Consolidated Sales
Overseas Sales Ratio to Consolidated Sales 57.3% 8.5% 11.8% 77.6%
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