FOR PRINT VERSION PLEASE VISIT
www.world.honda.com/investors/financialresult/
July 29, 2003
HONDA MOTOR CO., LTD. REPORTS
UNAUDITED CONSOLIDATED FINANCIAL RESULTS
FOR THE FISCAL FIRST QUARTER
ENDED JUNE 30, 2003
Tokyo, July 29, 2003 --- Honda Motor Co., Ltd. today announced its unaudited
consolidated financial results for the fiscal first quarter ended June 30,
2003.
Honda's consolidated net income for the fiscal first quarter ended June 30,
2003 totaled JPY 101.8 billion (USD 850 million), a decrease of 5.4% from the
same period in 2002. Basic net income per Common Share for the quarter amounted
to JPY 106.02 (USD 0.88), compared to JPY 110.42 for the same period in 2002.
Two of Honda's American Depositary Shares represent one Common Share.
Unit sales in all Honda's business categories, namely motorcycles, automobiles
and power products, increased for the quarter and consolidated net sales and
other operating revenue (herein referred to as "revenue") totaled a record
high, JPY 2,008.2 billion (USD 16,763 million), an increase of 3.7% over the
corresponding period in 2002.
Revenue included currency translation effects, which had a negative impact on
foreign currency denominated revenue from Honda's overseas subsidiaries
translated into yen.
Honda estimates that had the exchange rate of the yen remained unchanged from
the same period in 2002, revenue for the quarter would have increased by
approximately 8.2%.
Consolidated operating income for the first quarter totaled JPY 150.1 billion
(USD 1,254 million), a decrease of 12.1% compared to the same period in 2002.
This decrease in operating income was primarily due to the appreciation of the
yen and an increase in selling, general and administrative (SG&A) expenses,
which offset increased revenue, Honda's ongoing cost reduction efforts as well
as a decrease of research and development (R&D) expenses.
Consolidated income before income taxes for the quarter totaled JPY 147.9
billion (USD 1,235 million), a decrease of 9.6% from the same period in 2002.
With respect to Honda's sales in the fiscal first quarter by business category,
motorcycle unit sales increased 9.5% to 2,001,000 units, due mainly to strong
sales in Asian countries. However, revenue decreased 4.1%, to JPY 241.5 billion
(USD 2,016 million)*due to the appreciation of the yen against the U.S. dollar,
which had negative currency translation effects.
Honda's unit sales of automobiles increased by 2.0% to 708,000 units, due
primarily to favorable sales in North America, Europe and Asian countries,
which offset declined unit sales in Japan. As a result, revenue increased 4.5%,
to JPY 1,621.0 billion (USD 13,531 million) during the quarter.
Revenue from financial services increased 7.7% to JPY63.9 billion due mainly to
higher revenue from favorable automobile sales in North America.
Unit sales of power products totaled 1,217,000 units, an increase of 8.6%
compared to the corresponding period in 2002. Favorable sales of Honda's
general-purpose engines in North America contributed to this increase. Revenue
from power product and other businesses increased by 8.8% to JPY 85.7 billion
(USD 716 million).
Forecasts for the fiscal year ending March 31, 2004
___________________________________________________
Consolidated financial forecasts
First half ending September 30, 2003
In billions of yen Changes from FY 2003
__________________ ____________________
Net sales and other operating revenue 4,050 +5.1%
Income before income taxes 298 +8.9%
Net income 206 +5.8%
Fiscal year ending March 31, 2004
In billions of Yen Changes from FY 2003
__________________ ____________________
Net sales and other operating revenue 8,300 +4.1%
Income before income taxes 648 +6.3%
Net income 451 +5.7%
Unconsolidated financial forecasts
First half ending September 30, 2003
In billions of yen Changes from FY 2003
__________________ ____________________
Net sales and other operating revenue 1,610 -1.0%
Income before income taxes 135 +11.8%
Net income 96 +4.7%
Fiscal year ending March 31, 2004
In billions of Yen Changes from FY 2003
__________________ ____________________
Net sales and other operating revenue 3,360 +1.1%
Income before income taxes 270 +11.3%
Net income 196 +15.3%
These forecasts are based on the assumption that the exchange rates for the yen
to the U.S. dollar and the euro for the current fiscal year will average JPY
117 and JPY 126, respectively.
This announcement contains forward-looking statements within the meaning of
Section 21E of the U.S. Securities Exchange Act of 1934. Honda's actual results
could materially differ from those contained in these forward-looking
statements as a result of numerous factors outside of Honda's control. Such
factors include general economic conditions in Honda's principal markets, and
foreign exchange rates between the Japanese yen and other major currencies, as
well as other factors detailed from time to time in Honda's reports filed with
the U.S. Securities and Exchange Commission.
[1] Unit Sales Breakdown
(In thousands of units)
__________________________
Three months Three months
ended ended
Jun. 30,2003 Jun. 30,2002
_____________ ____________
MOTORCYCLE BUSINESS
Japan 94 94
(motorcycles included above) (94) (94)
North America 99 119
(motorcycles included above) (65) (59)
Europe 101 98
(motorcycles included above) (99) (96)
Others 1,707 1,516
(motorcycles included above) (1,705) (1,511)
____________________________ ___________ ____________
Total 2,001 1,827
(motorcycles included above) (1,963) (1,760)
AUTOMOBILE BUSINESS
Japan 153 213
North America 397 367
Europe 56 46
Others 102 68
____________________________ ___________ ____________
Total 708 694
POWER PRODUCT BUSINESS
Japan 110 128
North America 634 517
Europe 244 267
Others 229 209
____________________________ ___________ ____________
Total 1,217 1,121
[2] Net Sales Breakdown
(A) For the three months ended June 30, 2003 and 2002
(In millions of Yen)
__________________________________
Three months Three months
ended ended
Jun. 30,2003 Jun. 30,2002
_________________ ________________
MOTORCYCLE BUSINESS
Japan 23,684 ( 9.8%) 25,533 (10.1%)
North America 59,294 (24.5%) 74,613 (29.6%)
Europe 62,280 (25.8%) 56,420 (22.4%)
Others 96,296 (39.9%) 95,299 (37.9%)
____________________ _________________ ________________
Total 241,554 (100.0%) 251,865 (100.0%)
AUTOMOBILE BUSINESS
Japan 294,184 (18.1%) 376,919 (24.3%)
North America 1,033,041 (63.7%) 955,200 (61.6%)
Europe 126,298 ( 7.8%) 93,375 ( 6.0%)
Others 167,478 (10.4%) 125,917 ( 8.1%)
___________________ __________________ ________________
Total 1,621,001 (100.0%) 1,551,411(100.0%)
FINANCIAL SERVICES
Japan 5,359 ( 8.5%) 6,425 (11.1%)
North America 56,094 (88.6%) 50,386 (86.8%)
Europe 1,737 ( 2.7%) 1,199 ( 2.1%)
Others 151 ( 0.2%) - ( - )
____________________ _________________ ________________
Total 63,341 (100.0%) 58,010 (100.0%)
POWER PRODUCT & OTHER BUSINESSES
Japan 28,069 (34.1%) 25,343 (33.5%)
North America 28,349 (34.4%) 28,883 (38.2%)
Europe 15,029 (18.3%) 13,501 (17.9%)
Others 10,885 (13.2%) 7,823 (10.4%)
____________________ _________________ ________________
Total 82,332 (100.0%) 75,550 (100.0%)
TOTAL
Japan 351,296 (17.5%) 434,220 (22.4%)
North America 1,176,778 (58.6%) 1,109,082 (57.3%)
Europe 205,344 (10.2%) 164,495 ( 8.5%)
Others 274,810 (13.7%) 229,039 (11.8%)
___________________ __________________ _________________
Total 2,008,228 (100.0%) 1,936,836 (100.0%)
Explanatory Note:
1. The geographical breakdown of net sales is based on the location of
affiliated and unaffiliated customers.
2. Net sales of power product & other businesses including revenue from sales
of power products and related parts, leisure businesses and trading.
[3] Consolidated Financial Summary
Financial Highlights
(In millions of Yen)
_________________________________________
Three months Three months
ended % ended
Jun. 30,2003 Change Jun. 30,2002
____________ __________ _____________
Net sales and other
operating revenue 2,008,228 3.7% 1,936,836
Operating income 150,183 -12.1% 170,823
Income before
income taxes 147,995 -9.6% 163,704
Net income 101,819 -5.4% 107,598
(In Yen)
_________________________________________
Basic net income per
Common Share 106.02 110.42
American Depositary
Share 53.01 55.21
(In millions of U.S. Dollars)
________________________________________
Three months
ended
Jun. 30,2003
Net sales and other
operating revenue 16,763
Operating income 1,254
Income before income taxes 1,235
Net income 850
(In U.S. Dollars)
________________________________________
Net income per
Common Share 0.88
American Depositary
Share 0.44
Explanatory Note:
The number of treasury stock has been excluded from the
calculation for basic net income per common share.
[4] Consolidated Statements of Income and Retained Earnings
(In millions of Yen)
_______________________________
Three months Three months
ended ended
Jun. 30,2003 Jun. 30,2002
_____________ _____________
Net sales and other
operating revenue 2,008,228 1,936,836
Operating costs and expenses:
Cost of sales 1,388,450 1,318,856
Selling, general and
administrative 366,851 339,134
Research and development 102,744 108,023
_____________ _____________
Operating income 150,183 170,823
Other income:
Interest 1,904 2,366
Other 12,869 16,036
Other expenses:
Interest 3,369 4,320
Other 13,592 21,201
_____________ _____________
Income before income taxes 147,995 163,704
Income taxes 58,922 67,919
_____________ _____________
Income before equity in
income of affiliates 89,073 95,785
Equity in income of affiliates 12,746 11,813
_____________ _____________
Net income 101,819 107,598
Retained earnings:
Balance at beginning of
period 3,161,664 2,765,600
Cash dividends paid (15,386) (14,616)
Transfer to legal reserves (2,944) (43)
_____________ _____________
Balance at end of period 3,245,153 2,858,539
============= =============
(In Yen)
_______________________________
Basic net income per
Common Share 106.02 110.42
American Depositary Share 53.01 55.21
Explanatory:
The number of treasury stock has been excluded from the calculation
for basic net income per common share.
[5] Consolidated Balance Sheets
(In millions of Yen)
_________________________________________
Assets
__________________________________________________________________
Jun. 30,2003 Mar. 31,2003 Jun. 30,2002
____________ ____________ ___________
(Unaudited) (Audited) (Unaudited)
Current assets:
Cash and cash equivalents 578,991 547,404 492,547
Trade accounts and notes
receivable 380,891 444,498 366,924
Finance subsidiaries-
receivables, net 1,114,177 1,097,541 903,205
Inventories 775,977 751,980 638,409
Deferred income taxes 212,537 202,376 177,005
Other current assets 255,641 248,561 209,485
____________ ____________ ___________
Total current assets 3,318,214 3,292,360 2,787,575
____________ ____________ ___________
Finance subsidiaries-
receivables, net 2,377,177 2,230,020 1,815,320
Investments and advances 453,376 412,971 397,207
Property, plant
and equipment, at cost:
Land 348,858 342,991 329,395
Buildings 955,703 942,747 908,063
Machinery and equipment 2,039,632 2,023,724 2,006,414
Construction in progress 85,312 72,112 86,848
____________ ____________ ___________
3,429,505 3,381,574 3,330,720
Less accumulated
depreciation 2,019,359 1,987,231 1,968,713
____________ ____________ ___________
Net property,
plant and equipment 1,410,146 1,394,343 1,362,007
____________ ____________ ___________
Other assets 351,758 351,597 248,785
__________________________________________________________________
Total assets 7,910,671 7,681,291 6,610,894
==================================================================
[5] Consolidated Balance Sheets - continued
(In millions of Yen)
_________________________________________
Liabilities and Stockholders' Equity
_______________________________________________________________________________
Jun.30,2003 Mar.31,2003 Jun.30,200
_____________ ____________ _____________
(Unaudited) (Audited) (Unaudited)
Current liabilities:
____________________
Short-term debt 891,795 877,954 887,540
Current portion of long-term debt 364,525 304,342 207,696
Trade payables 757,514 830,671 772,565
Accrued expenses 762,206 777,492 637,092
Income taxes payables 50,689 64,179 50,664
Other current liabilities 317,763 267,752 192,043
_____________ ____________ _____________
Total current liabilities 3,144,492 3,122,390 2,747,600
_____________ ____________ _____________
Long-term debt 1,233,122 1,140,182 801,824
Other liabilities 798,561 788,999 536,935
______________________________________________________________________________
Total liabilities 5,176,175 5,051,571 4,086,359
______________________________________________________________________________
Stockholders' equity:
Common stock 86,067 86,067 86,067
Capital surplus 172,529 172,529 172,529
Legal reserves 32,335 29,391 29,012
Retained earnings 3,245,153 3,161,664 2,858,539
Adjustments from foreign
currency translation ( 451,824) ( 469,472) ( 443,332)
Net unrealized gains on
marketable equity securities 22,136 14,820 9,613
Minimum pension
liabilities adjustment (308,513) (308,513) (187,824)
_____________ ____________ _____________
Accumulated other comprehensive (738,201) (763,165) (621,543)
income (loss)
Treasury stock (63,387) (56,766) (69)
______________________________________________________________________________
Total stockholders' equity 2,734,496 2,629,720 2,524,535
______________________________________________________________________________
Total liabilities and
stockholders' equity 7,910,671 7,681,291 6,610,894
______________________________________________________________________________
[6] Segment Information
(A) Business Segment Information
For the three months ended June 30, 2003
(In millions of Yen)
___________________________________________________________________________________
Motor- Auto- Power Product Corporate assets
Cycle mobile Financial and Other and
Business Business Services Businesses Total Eliminations Consolidated
________ ________ ________ _________ _________ _______ __________
Net sales and other
operating revenue:
Sales to
unaffiliated customers 241,554 1,621,001 63,341 82,332 2,008,228 - 2,008,228
Intersegment sales 0 0 617 3,417 4,034 (4,034) -
________ ________ ________ _________ _________ _______ __________
Total 241,554 1,621,001 63,958 85,749 2,012,262 (4,034) 2,008,228
Cost of sales,
S.G.A. and R&D expenses 235,695 1,498,382 43,401 84,601 1,862,079 (4,034) 1,858,045
________ ________ ________ _________ _________ _______ __________
Operating income 5,859 122,619 20,557 1,148 150,183 0 150,183
======== ======== ======== ========== ========= ======= ==========
For the three months ended June 30, 2002
(In millions of Yen)
___________________________________________________________________________________
Motor- Auto- Power Product Corporate assets
Cycle mobile Financial and Other and
Business Business Services Businesses Total Eliminations Consolidated
________ ________ ________ _________ _________ _______ __________
(In millions of Yen)- - - -
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
Intersegment-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 Note:
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 vehicles (ATV), Large-size motorcycles, mid-size motorcycle
s,
personal water craft and relevant parts motorized bicycles, all-terrain vehicles (A
TV),
personal water craft
Automobile Automobiles and relevant parts Compact cars, sub-compact cars, mini-vehicl
es
Financial Services Financial and insurance services
Power Product & Other Power products and relevant parts, and others Power tillers, generators,
general purpose engines, lawn mowers-
(B) Geographical Segment Information
The geographical segmentation is based on the location where sales originated.
For the three months ended June 30, 2003 (In millions of Yen)
_______________________________________________________________________________________
__
Corporate assets
and
Japan North America Europe Others Total Eliminations Consolida
ted
_______ ___________ _______ _______ _______ ____________ ________
____
Net sales and other
operating revenue:
Sales to
unaffiliated customers 411,863 1,179,328 202,828 214,209 2,008,228 - 2,008,
228
Transfers between
geographical segments 531,959 32,323 48,562 13,032 625,876 (625,876)
-
_______ ___________ _______ _______ __________ ____________ ________
___
Total 943,822 1,211,651 251,390 227,241 2,634,104 (625,876) 2,008,
228
Cost of sales,
S.G.A. and R&D expenses 905,975 1,112,728 245,568 211,560 2,475,831 (617,786) 1,858,
045
_______ ___________ _______ _______ __________ ____________ ________
____
Operating income (losses) 37,847 98,923 5,822 15,681 158,273 (8,090) 150,
183
======= =========== ======= ======= ======= ============ ========
====
For the three months ended June 30, 2002 (In millions of Yen)
_______________________________________________________________________________________
__
Corporate assets
and
Japan North America Europe Others Total Eliminations Consolida
ted
_______ ___________ _______ _______ _______ ____________ ________
____
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) 1,936,
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 three months ended June 30, 2003 (In Millions of Yen)
North America Europe Others Total
_____________ ________ ________ _________
Overseas Sales 1,176,778 205,344 274,810 1,656,932
Consolidated Sales 2,008,228
Overseas Sales Ratio to Consolidated Sales 58.6% 10.2% 13.7% 82.5%
For the three months June 30, 2002 (In Millions of Yen)
North America Europe Others Total
_____________ ________ ________ _________
Overseas Sales 1,109,082 164,495 229,039 1,502,616
Consolidated Sales 1,936,836
Overseas Sales Ratio to Consolidated Sales 57.3% 8.5% 11.8% 77.6%
Explanatory Notes:
1. The Company prepares its consolidated financial statements in conformity
with accounting principles generally accepted in the United States since the
Company has issued American Depositary Receipts listed on the New York Stock
Exchange and files reports with the U.S. Securities and Exchange Commission,
except all segment information which is prepared in accordance with a
Ministerial Ordinance under the Securities and Exchange Law of Japan.
2. The average exchange rates for the fiscal first quarter ended June 30, 2003
were 118.50=U.S.$1 and 134.66=euro1. The average exchange rates for the
corresponding period last year were 127.04=U.S.$1 and 116.57=euro1
3. United States dollar amounts have been translated from yen solely for the
convenience of the reader at the rate of 119.80=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 June
30, 2003.
4. The Company's Common Stock-to-ADR exchange rate has been changed from two
shares of Common Stock to one ADR to one share of Common Stock to two ADRs,
effective January 10, 2002.
5. The Company has adopted the provisions of Statement of Financial Accounting
Standards (SFAS) No.130, "Reporting Comprehensive Income". The following
table represents components of the Company's comprehensive income. Other
comprehensive income (loss) consists of changes in adjustments from foreign
currency translation, net unrealized gains on marketable equity securities
and minimum pension liabilities adjustment.
Three months ended Three months ended
June 30, 2003 June 30, 2002
(In millions of Yen)
Net income 101,819 107,598
Other comprehensive 24,964 (142,368)
income (loss)
___________________________________________________________________________
Comprehensive income(loss) 126,783 (34,770)
6. Certain reclassifications have been made to the prior year's consolidated
financial statements to confirm to the presentation used for the fiscal
first quarter ended June 30, 2003.
7. The number of treasury stock has been excluded from the calculation for
basic net income per common share.
July 29, 2003
Honda Motor Co., Ltd.
CONSOLIDATED FINANCIAL SUMMARY
FOR THE FISCAL YEAR ENDED JUNE 30, 2003
(Billions of Yen)
____________________________________________________________________________
Results for the Results for the Forecasts for the Results for the
fiscal first quarter fiscal first quarter fiscal year ending fiscal year
ended ended Jun. 30,2003 Mar. 31,2004 ended
Jun. 30,2002 [change / %] [ change / %] Mar. 31,2003
__________ ______________________ _____________________ ___________
Net sales and
other operating
revenue 1,936.8 2,008.2 [ 71.3/ 3.7%] 8,300.0 [328.5/ 4.1%] 7,971.4
- Japan 434.2 351.2 [-82.9/-19.1%] 1,800.0 [ 51.2/ 2.9%] 1,748.7
- Overseas 1,502.6 1,656.9 [154.3/ 10.3%] 6,500.0 [277.2/ 4.5%] 6,222.7
_________________ __________ ______________________ _____________________ ___________
Operating income 170.8 150.1 [-20.6/-12.1%] 644.0 [-45.4/-6.6%] 689.4
_________________ __________ ______________________ _____________________ ___________
Income before
income taxes 163.7 147.9 [-15.7/ -9.6%] 648.0 [ 38.2/ 6.3%] 609.7
_________________ __________ ______________________ _____________________ ___________
Net income 107.5 101.8 [ -5.7/ -5.4%] 451.0 [ 24.3 /5.7%] 426.6
_________________ __________ ______________________ _____________________ ___________
(INCREASE FACTORS) (INCREASE FACTORS)
-Change in revenue -Change in revenue
model mix, etc. 18.2 model mix, etc. 77.7
Factors of change -Cost reduction 8.0 -Cost reduction 50.0
in operating -Change in R&D 5.2
income (DECREASE FACTORS)
(DECREASE FACTORS) -Currency effects -85.8
-Currency effects -19.0 Change in
Change in transaction
transaction rates (-77.0)
rates (-19.5) Translation
Translation effects (-13.5)
effects (-6.5) Difference
Difference between
between transaction rate
transaction rate and weighted
and weighted average rate (4.7)
average rate (7.0) -Change in SG&A -59.3
-Change in SG&A -33.2 -Change in R&D -28.1
_________________ __________ ______________________ _____________________ ___________
Average rates for
the period USD= JPY 127 JPY 119 JPY 117 JPY 122
Average rates for
the period EUR= JPY 116 JPY 134 JPY 128 JPY 122
Honda's transaction
rate USD= JPY 128 JPY 119 JPY 117 JPY 123
Honda's transaction
rate EUR= JPY 112 JPY 126 JPY 126 JPY 115
Capital expenditures 61.7 57.2 320.0 316.9
Depreciation 49.2 50.6 200.0 220.8
Research and
development 108.0 102.7 465.0 436.8
Interest bearing
debt 1,897.0 2,489.4 - 2,322.4
_________________ __________ ______________________ _____________________ ___________
REMARKS * Sales set record * Net sales, income
high for the fiscal before income taxes
first quarter and net income to
set record high
_________________ __________ ______________________ _____________________ ___________
____________________________________________________________________________
Results for the Results for the Forecasts for the Results for the
fiscal first quarter fiscal first quarter fiscal year ending fiscal year
ended ended Jun. 30,2003 Mar. 31,2004 ended
Jun. 30,2002 [change / %] [ change / %] Mar. 31,2003
__________ ______________________ _____________________ ___________
(thousands of units)
Unit sales of
motorcycles 1,827 2,001 [174/ 9.5%] 9,080 [1,000/ 12.4%] 8,080
(M/C included
above) (1,760) (1,963) [203/11.5%] (8,760)[ 986/ 12.7%] (7,774)
_________________ __________ ______________________ _____________________ ___________
Japan 94 94 [ 0/ 0.0%] 430 [ -2/ -0.5%] 432
(M/C included
above) (94) (94) [ 0/ 0.0%] (430)[ -2/ -0.5%] (432)
Overseas 1,733 1,907 [174/10.0%] 8,650 [1,002/ 13.1%] 7,648
(M/C included
above) (1,666) (1,869) [203/12.2%] (8,330)[ 988/ 13.5%] (7,342)
_________________ __________ ______________________ _____________________ ___________
North America 119 99 [-20/-16.8%] 660 [ 50/ 8.2%] 610
(M/C included
above) (59) (65) [ 6/10.2%] (350)[ 26/ 8.0%] (324)
Europe 98 101 [ 3/ 3.1%] 290 [ -15/ -4.9%] 305
(M/C included
above) (96) (99) [ 3/ 3.1%] (284)[ -12/ -4.1%] (296)
Others 1,516 1,707 [191/12.6%] 7,700 [ 967/ 14.4%] 6,733
(M/C included
above) (1,511) (1,705) [194/12.8%] (7,696)[ 974/ 14.5%] (6,722)
_________________ __________ ______________________ _____________________ ___________
Unit sales of
automobiles 694 708 [ 14/ 2.0%] 3,065 [ 177/ 6.1%] 2,888
_________________ __________ ______________________ _____________________ ___________
Japan 213 153 [-60/-28.2%] 815 [ -34/ -4.0%] 849
_________________ __________ ______________________ _____________________ ___________
Overseas 481 555 [ 74/15.4%] 2,250 [ 211/ 10.3%] 2,039
_________________ __________ ______________________ _____________________ ___________
North America 367 397 [ 30/ 8.2%] 1,560 [ 38/ 2.5%] 1,522
Europe 46 56 [ 10/21.7%] 215 [ 8/ 3.9%] 207
Others 68 102 [ 34/50.0%] 475 [ 165/ 53.2%] 310
_________________ __________ ______________________ _____________________ ___________
Unit sales of
power products 1,121 1,217 [ 96/ 8.6%] 5,070 [ 486/ 10.6%] 4,584
_________________ __________ ______________________ _____________________ ___________
Japan 128 110 [-18/-14.1%] 430 [ -42/ -8.9%] 472
_________________ __________ ______________________ _____________________ ___________
Overseas 993 1,107 [114/11.5%] 4,640 [ 528/ 12.8%] 4,112
_________________ __________ ______________________ _____________________ ___________
North America 517 634 [117/22.6%] 2,235 [ 363/ 19.4%] 1,872
Europe 267 244 [-23/-8.6%] 1,295 [ 5/ 0.4%] 1,290
Others 209 229 [ 20/ 9.6%] 1,110 [ 160/ 16.8%] 950
This announcement contains forward-looking statements within the meaning of Section 21E of
the U.S. Securities Exchange Act of 1934. Honda's actual results could materially differ
from those contained in these forward-looking statements as a result of numerous factors
outside of Honda's control, including general economic conditions in Honda's principal
markets and foreign exchange rates between the Japanese yen and other major currencies, as
well as other factors detailed from time to time in Honda's reports filed with the U.S.
Securities and Exchange Commission.
July 29, 2003
Consolidated Financial Summary ( Supplemental version ) Honda Motor Co., Ltd.
(Thousands of units, Millions of Yen)
___________________________________ ________________________________________
Fourth Quarter Results Fiscal Year Results & Forecasts
3M ended 3M ended % Year ending Year ended %
Jun.2003 Jun.2002 change change Mar.2004 Mar.2003 change change
________ ________ ______ _______ ___________ __________ _______ ______
Unit sales of
motorcycles
Japan 94 94 0 0.0% 430 432 -2 -0.5%
(M/C included
above) (94) (94) (0) (0.0%) (430) (432) (-2) (-0.5%)
North America 99 119 -20 -16.8% 660 610 50 8.2%
(M/C included
above) (65) (59) (6) (10.2%) (350) (324) (26) (8.0%)
Europe 101 98 3 3.1% 290 305 -15 -4.9%
(M/C included
above) (99) (96) (3) (3.1%) (284) (296) (-12) (-4.1%)
Others 1,707 1,516 191 12.6% 7,700 6,733 967 14.4%
(M/C included
above) (1,705) (1,511) (194) (12.8%) (7,696) (6,722) (974) (14.5%)
_____________ ________ ________ ______ _______ ___________ __________ _______ ______
Total 2,001 1,827 174 9.5% 9,080 8,080 1,000 12.4%
(M/C included
above) (1,963) (1,760) (203) (11.5%) (8,760) (7,774) (986) (12.7%)
Unit sales of
automobiles
Japan 153 213 -60 -28.2% 815 849 -34 -4.0%
North America 397 367 30 8.2% 1,560 1,522 38 2.5%
Europe 56 46 10 21.7% 215 207 8 3.9%
Others 102 68 34 50.0% 475 310 165 53.2%
_____________ ________ ________ ______ _______ ___________ __________ _______ ______
Total 708 694 14 2.0% 3,065 2,888 177 6.1%
Unit sales of
power products
Japan 110 128 -18 -14.1% 430 472 -42 -8.9%
North America 634 517 117 22.6% 2,235 1,872 363 19.4%
Europe 244 267 -23 -8.6% 1,295 1,290 5 0.4%
Others 229 209 20 9.6% 1,110 950 160 16.8%
_____________ ________ ________ ______ _______ ___________ __________ _______ ______
Total 1,217 1,121 96 8.6% 5,070 4,584 486 10.6%
Exchange rate
to USD (Note)
Honda's
transaction
rates 119.00 128.00 -9.00 -7.0% 117.00 123.00 -6.00 -4.9%
Market
average rates
for the period 118.50 127.04 -8.54 -6.7% 117.00 121.95 -4.95 -4.1%
Rates for the
period-end 119.80 119.50 0.30 0.3% 120.20
Exchange rate to
EUR (Note)
Honda's
transaction
rates 126.00 112.00 14.00 12.5% 126.00 115.00 11.00 9.6%
Market average
rates for the
period 134.66 116.57 18.09 15.5% 128.00 121.04 6.96 5.8%
Rates for the
period-end 136.92 118.13 18.79 15.9% 129.83
Key items
Net sales and
other
operating
revenue 2,008,228 1,936,836 71,392 3.7% 8,300,000 7,971,499 328,501 4.1%
Japan 351,296 434,220 -82,924 -19.1% 1,800,000 1,748,706 51,294 2.9%
Overseas 1,656,932 1,502,616 154,316 10.3% 6,500,000 6,222,793 277,207 4.5%
Operating
income 150,183 170,823 -20,640 -12.1% 644,000 689,449 -45,449 -6.6%
Income before
income taxes 147,995 163,704 -15,709 -9.6% 648,000 609,755 38,245 6.3%
Net income 101,819 107,598 -5,779 -5.4% 451,000 426,662 24,338 5.7%
Capital
expenditures 57,259 61,791 -4,532 -7.3% 320,000 316,991 3,009 0.9%
Depreciation 50,684 49,239 1,445 2.9% 200,000 220,874 -20,874 -9.5%
Research and
development 102,744 108,023 -5,279 -4.9% 465,000 436,863 28,137 6.4%
Stockholders'
equity 2,734,496 2,524,535 209,961 8.3% 2,629,720
Total assets 7,910,671 6,610,894 1,299,777 19.7% 7,681,291
Interest
bearing debt 2,489,442 1,897,060 592,382 31.2% 2,322,478
_______________________________________________________ _______________________________________
Notes * Net sales set record high * Net sales, income before
for the fiscal firstquarter income taxes and net income
set record high
_______________________________________________________ _______________________________________
Note
Honda's transaction rates : rates to be used mainly for exchanging the
Company's foreign currency-denominated trade amount
into yen.
Market average rates for
the period : rates to be used for translating the Company's
subsidiaries' foreign currency-denominated statements
of income into yen.
Rates for the period-end : rates to be used for translating the Company's
subsidiaries' foreign currency-denominated assets
and liabilities into yen.
1st Fiscal Year
Quarter Forecasts
_________________________________________ ___________ _____________
Factors of changes in operating income
Changes in revenue, model mix, etc. +18,298 +77,793
Currency effects -19,000 -85,800
(Change in transaction rates) -19,500 -77,000
U. S. Dollar (-23,000) (-68,000)
Euro (+5,000) (+16,600)
Others (-1,500) (-25,600)
(Translation effects) -6500 -13,500
Gross profit (-12,000) (-31,300)
SG&A (+5,500) (+17,800)
(Difference between transaction
rate and weighted average rate) +7,000 +4,700
Cost reduction +8,000 +50,000
Materials and other +10,000 +50,000
Labor expenses -3,000 -13,000
Depreciation +1,000 +13,000
Changes in SG&A -33,217 -59,305
Changes in R&D +5,279 -28,137
_________________________________________ ___________ _____________
Changes in operating income -20,640 -45,449
_________________________________________ ___________ _____________
This announcement contains forward-looking statements within the meaning of Section 21E of
the U.S. Securities Exchange Act of 1934. Honda's actual results could materially differ
from those contained in these forward-looking statements as a result of numerous factors
outside of Honda's control, including general economic conditions in Honda's principal
markets and foreign exchange rates between the Japanese yen and other major currencies, as
well as other factors detailed from time to time in Honda's reports filed with the U.S.
Securities and Exchange Commission.
July 29, 2003
Honda Motor Co., Ltd
UNCONSOLIDATED FINANCIAL FORECASTS
FOR THE FISCAL YEAR
(Parent company only)
(Billions of Yen)
_________________________________________________________________
Results for the Forecasts for the
fiscal year fiscal year ending
ended March 31, 2004
March 31, 2003 (change / % change)
_______________________________________________________________________________________________________
Net sales and
other operating revenue 3,322.7 3,360.0 ( 37.2 / 1.1%)
- Domestic 1,276.6 1,260.0 ( -16.6 / -1.3%)
- Export 2,046.0 2,100.0 ( 53.9 / 2.6%)
_______________________________________________________________________________________________________
Operating income 144.8 165.0 ( 20.1 / 13.9%)
