Honda Motor has posted record results for fiscal year 2008 but sharply reduced profit forecasts for FY2009, based on an exchange rate of just JPY100 to US$1.

Consolidated net sales and other operating revenue rose for the eighth consecutive fiscal year by 8.3% to JPY12,002.8bn (+8.3%) due, the diversified automaker said, to increased sales revenue in all business areas.

Consolidated operating income rose 11.9% to a record JPY 953.1bn due to increased profit from higher revenues, cost reductions, and the positive effect of currency exchange rates, despite an increase in incentives in North America, the impact of increased raw material costs, and increases in selling, general and administrative expenses and research and development expenses.

Net income was up 1.3% to JPY600.0bn.

Automobile sales rose 7.5% to 3.925m units due to increased sales in markets outside of Japan, especially in North America, Europe and Asia.

Motorcycle sales fell 10.1% to 9.32m while power products (such as lawn mowers) were off 5.7% to 6.057m units.

Honda is forecasting FY2009 automobile sales up 5.5% to 4.14m units.

It expects a 1.1% increase in net sales to 12.140bn; a 31.8% drop in operating income to 650bn and an 18.3% drop to 490bn net income.