Honda Motor Co., Ltd. Reports Consolidated Financial Results for the Fiscal Fourth Quarter and the Fiscal Year Ended March 31, 2010

TOKYO, April 28 /PRNewswire-FirstCall/ -- Honda Motor Co., Ltd. (NYSE: HMC) today announced its consolidated financial results for the fiscal fourth quarter and the fiscal year ended March 31, 2010.

Financial Results for the 4th Quarter and the Fiscal Year Ended March 31, 2010

Honda's consolidated net income attributable to Honda Motor Co., Ltd. for the fiscal fourth quarter ended March 31, 2010 amounted to JPY 72.1 billion (USD 776 million), an increase of JPY 252.1 billion from the same period in 2009. Basic net income attributable to Honda Motor Co., Ltd. per common share for the quarter amounted to JPY 39.78 (USD 0.43), an increase of JPY 138.95 from the corresponding period last year.  One Honda American Depository Share represents one common share.

Honda's consolidated net income attributable to Honda Motor Co., Ltd. for the fiscal year ended March 31, 2010 totaled JPY 268.4 billion (USD 2,885 million), an increase of 95.9% from the previous fiscal year.  Basic net income attributable to Honda Motor Co., Ltd. per common share for the period amounted to JPY 147.91 (USD 1.59), an increase of JPY 72.41 from the previous fiscal year.

United States dollar amounts have been translated from yen solely for the convenience of the reader at the rate of Yen 93.04=U.S.$1, the mean of the telegraphic transfer selling exchange rate and the telegraphic transfer buying exchange rate prevailing on the Tokyo foreign exchange market on March 31, 2010.

Forecasts for the Fiscal Year Ending March 31, 2011

The forecasts are based on the assumption that the average exchange rates for the Japanese yen to the U.S. dollar and the Euro will be JPY 90 and JPY 120, respectively, for the first half of the year ending March 31, 2011, and JPY 90 and JPY 120, respectively, for the full year ending March 31, 2011.

The reasons for the increases or decreases for forecasts of the operating income, and income before income taxes and equity in income of affiliates for the fiscal year ending March 31, 2011 from the corresponding period last year are as follows.

Profit Redistribution Policy and Dividend per Share of Common Stock for fiscal years 2010 and 2011

The Company strives to carry out its operations worldwide from a global perspective and to increase its corporate value.  With respect to the redistribution of profits to our shareholders, which we consider to be one of the most important management issues, the Company's basic policy for dividends is to make distributions after taking into account its long-term consolidated earnings performance.

The Company will also acquire its own shares at the optimal timing with the goal of improving efficiency of the Company's capital structure and implementing a flexible capital policy.  The present goal is to maintain a shareholders return ratio (i.e. the ratio of the total of the dividend payment and the repurchase of the Company's own shares to consolidated net income attributable to Honda Motor Co., Ltd.) of approximately 30%.  Retained earnings will be allocated toward financing R&D activities that are essential for the future growth of the Company and capital expenditures and investment programs that will expand its operations for the purpose of improving business results and strengthening the Company's financial condition.

The Company plans to distribute year-end cash dividends of JPY 12 per share for the year ended March 31, 2010.  As a result, total cash dividends for the year ended March 31, 2010, together with the first quarter cash dividends of JPY 8, the second quarter cash dividends of JPY 8 and the third quarter cash dividends of JPY 10, are planned to be JPY 38 per share, a decrease of JPY 25 per share from the annual dividends paid for the year ended March 31, 2009.

Also, please note that the year-end cash dividends for the year ended March 31, 2010 is a matter to be resolved at the general meeting of shareholders.  

The Company plans to distribute quarterly cash dividends of JPY 12 per share for each quarter for the year ending March 31, 2011.  As a result, total cash dividends for the year ending March 31, 2011 are planned to be JPY 48 per share, an increase of JPY 10 from the annual dividends to be paid for the year ended March 31, 2010.

For Additional information, please visit;

http://world.honda.com/investors/meeting/

where you can download 4Q financial results and presentation materials.

This announcement contains "forward-looking statements" as defined in Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended.  Such statements are based on management's assumptions and beliefs taking into account information currently available to it.  Therefore, please be advised that Honda's actual results could differ materially from those described in these forward-looking statements as a result of numerous factors, including general economic conditions in Honda's principal markets and foreign exchange rates between the Japanese yen and the U.S. dollar, the Euro and other major currencies, as well as other factors detailed from time to time. The various factors for increases and decreases in income have been classified in accordance with a method that Honda considers reasonable.

SOURCE Honda Motor Co., Ltd.