Honda Motor Co., Ltd. Reports Consolidated Financial Results for the Fiscal Second Quarter Ended September 30, 2011

TOKYO, Oct. 31, 2011 /PRNewswire/ -- Honda Motor Co., Ltd. (NYSE: HMC) today announced its consolidated financial results for the fiscal Second quarter ended September 30, 2011.

Honda's consolidated net income attributable to Honda Motor Co., Ltd. for the fiscal second quarter ended September 30, 2011 totaled JPY 60.4 billion (USD 788 million), a decrease of 55.5% from the same period last year. Basic net income attributable to Honda Motor Co., Ltd. per common share for the quarter amounted to JPY 33.53 (USD 0.44), a decrease of JPY 41.71 (USD 0.54) from JPY 75.24 for the corresponding period last year. One Honda American Depository Share represents one common share.

Consolidated net sales and other operating revenue (herein referred to as "revenue") for the quarter amounted to JPY 1,885.8 billion (USD 24,604 million), a decrease of 16.3% from the same period last year, due primarily to decreased revenue in the automobile business mainly caused by the impact of the Great East Japan Earthquake occurred on March 11, 2011 (the "Earthquake") and the unfavorable foreign currency translation effects, despite increased revenue in the motorcycle business.

Consolidated operating income for the quarter amounted to JPY 52.5 billion (USD 685 million), a decrease of 67.9% from the same period last year, due primarily to a decrease in sales volume and model mix, increase in fixed costs per unit as production output has reduced, increased raw material cost and the unfavorable foreign currency effect, despite decreased SG&A expenses.

Consolidated income before income taxes and equity in income of affiliates for the quarter totaled JPY 76.5 billion (USD 999 million), a decrease of 53.9% from the same period last year.

Equity in income of affiliates amounted to JPY 15.5 billion (USD 203 million) for the quarter, a decrease of 56.3% from the corresponding period last year due mainly to declined income in affiliated companies in China due to decreased sales and production by supply-chain disruption triggered by the earthquake.

With respect to Honda's sales for the fiscal second quarter by business segment, motorcycle unit sales totaled 3,276 thousand units, an increase of 20.0% from the same period last year due mainly to increased unit sales in Asia and other regions including South America. Revenue from sales to external customers increased 14.2%, to JPY 357.3 billion (USD 4,662 million), from the same period last year, due mainly to increased unit sales. Operating income totaled to JPY 38.9 billion (USD 508 million), an increase of 29.7% from the same period last year, due primarily to increased unit sales, despite increased SG&A expenses.

Honda's automobile unit sales totaled 772 thousand units, a decrease of 14.0% from the same period last year mainly due to decreased unit sales in the North America and Japan caused by supply-chain disruptions from the Earthquake. Revenue from sales to external customers decreased 22.6%, to JPY 1,333.0 billion (USD 17,391 million), from the same period last year due mainly to decreased unit sales and unfavorable currency translation effects. Honda reported an operating loss of JPY 29.1 billion (USD 380 million), a decrease of JPY 115.5 billion (USD 1,507 million) from the same period last year, due primarily to decreased unit sales, increase in fixed costs per unit as production output has reduced, increased raw material cost and unfavorable currency effect, despite decreased SG&A expenses.

Revenue from customers in the financial services business decreased 10.5%, to JPY 126.4 billion (USD 1,650 million) from the same period last year due mainly to the unfavorable foreign currency translation effects. Operating income decreased 9.7% to JPY 42.8 billion (USD 559 million) from the same period last year due mainly to the unfavorable foreign currency effects, despite the decreased allowance for losses on credit and lease residual values.

Honda's power product unit sales totaled 1,276 thousand units, an increase of 9.4% from the same period last year due to an increase in unit sales in North America, Asia and Japan. Revenue from sales to external customers in power product and other businesses decreased 2.0%, to JPY 69.0 billion (USD 900 million), from the same period last year, due mainly to the unfavorable currency translation effects, despite increased unit sales in power products. Honda reported an operating loss of JPY 0.1 billion (USD 1 million), an improvement of JPY 0.3 billion from the same period last year due mainly to an increase of unit sales in power products and decreased SG&A expenses.

Forecasts for the Fiscal Year Ending March 31, 2012

Thailand has been suffering from severe floods, which caused damage to certain inventories, and machineries and equipments of Honda's consolidated subsidiaries and affiliates including Honda Automobile (Thailand) Co., Ltd. by flooding these production facilities. Accordingly, production activities in plant facilities at Honda and its affiliates have been affected by floods and relevant disruptions of parts supply.

The Company is currently evaluating the extent of the damage resulting from the floods, and it is not possible to reasonably estimate the impacts on the consolidated and unconsolidated financial results at this time.

Therefore, forecasts of the consolidated and unconsolidated financial results for the fiscal year ending March 31, 2012 is not determined. The Company will release the forecasts as soon as they become available.

Dividend per Share of Common Stock

The Board of Directors of Honda Motor Co., Ltd., at its meeting held on October 31, 2011, resolved to make the quarterly dividend JPY 15 per share of common stock, the record date of which is September 30, 2011.  The total expected annual dividend per share of common stock for the fiscal year ending March 31, 2012, is JPY 60 per share.

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.

For Additional Information, Please visit;

http://world.honda.com/investors/library/financialresult/

Where you can download financial results information.

SOURCE Honda Motor Co., Ltd.