Honda Motor has boosted consolidated net income for its fiscal third quarter (ended 31 December) by 38.1% year on year to JPY200.0bn ($US1,752m). Net income per share was JPY110.25 ($0.97), up JPY30.80. Consolidated net income for the first nine months rose 38.1% to JPY574.6bn ($US5,034m), the automaker said in a statement. Nine-month net income per share rose JPY 88.53 to JPY316.49 ($US2.77).
Go deeper with GlobalData
Discover B2B Marketing That Performs
Combine business intelligence and editorial excellence to reach engaged professionals across 36 leading media platforms.
Consolidated net sales and other operating revenue for the third quarter rose 10% to JPY3,044.8bn (U$26,674m) due mainly to increased revenue in Europe, Asia and other regions in both motorcycle and automobile business.
Consolidated operating income for the quarter rose 34.7% to JPY276.2bn ($2,420m) primarily due to the increased profit attributable to higher revenue and continuing cost reductions which offset the negative impact of increased raw material costs, and higher depreciation and R&D expenses.
Consolidated income before income taxes and other adjustments was up 31.2% to JPY260.7bn ($2,284m).
Automobile unit sales for the third quarter increased 8.3% to 991,000 units. Japan sales were off 7.1% to 145,000 units but overseas sales rose 11.5% to 846,000 due mainly to the increases in North America following the launch of the redesigned Accord last September, and higher sales in Europe, Asia and other regions, particularly of the CR-V and Civic.
Automobiles operating income rose 37.3% to JPY220.7bn ($US1,934m) due mainly to increased profit attributable to higher revenue, continuing cost reductions, a decrease in provision for sales incentives in North America and decreased SG&A expenses, offsetting adverse effect on the elimination of unrealised profits on inventories, increased raw material costs, and increased depreciation and R&D expenses.
Motorcycle unit sales fell 14.4% to 2,366,000 units worldwide with the automaker blaming a decline in unit sales of parts for local production at its affiliates accounted for under the equity method in Asia which more than offset gains in Brazil and Vietnam.
Financial services revenue increased 30.4% to JPY135.9bn ($US1,191m) and operating income was up 0.7% due to increased profit attributable to higher revenue, offsetting the increased SG&A expenses.
Nine-month consolidated revenue rose 11.9% to JPY8,947.2bn and consolidated operating income was up 30.4% to JPY784.2bn ($US6,870m), for much the same reasons as the quarterly hike plus positive currency effects caused by depreciation of the Japanese yen.
Consolidated income before income taxes and other adjustments rose 35.2% to JPY748.9bn ($US6,561m).
Automobile unit sales rose 6.6% to 2,874,000 units, with a 12.2% decrease in Japan to 424,000 units offset by a 10.8% rise in overseas sales to 2,450,000. Operating income increased 31.8% to JPY582.0bn ($US5,099m).
Financial services revenue rose 35.3% to JPY395.5bn ($US3,465m) and operating income increased 15.9% to JPY86.4bn ($US757m).
Motorcycle unit sales fell 12.7% to 6,952,000 units.
For the fiscal year ending 31 March 2008, Honda has forecast net sales and other operating revenue up 9.6% to JPY12,150bn, operating income up 8% to 920bn and net income up 16.5% to 690bn. Basic net income per share is pegged at JPY380.25.
These forecasts were based on the assumption that the average exchange rates for the Japanese yen to the US dollar and the Euro will be JPY105 and JPY155 for the fiscal fourth quarter and JPY114 and JPY161 for the full year.
The automaker will pay a third quarter dividend of JPY22 per share
Credit Suisse auto analyst Koji Endo told the Associated Press the results were spectacular but expressed worries about the new fiscal year that starts on 1 April because of the sharp fall of the dollar.
