Honda Motor Company today announced record fourth quarter fiscal year net income of 106.7 billion yen ($US801 million), up 69.4 percent over the corresponding period in 2001.

Full-year consolidated was also a record 362.7 billion yen ($2,722 million), an increase of 56.2 percent from the previous fiscal year.

In a statement of consolidated financial results for the fourth quarter and fiscal year 2002, Honda said basic net income per common share for the quarter ended March 31 was 109.51 yen ($0.82), compared with 64.65 yen in 2001. (Two American shares represent one common share.)

Consolidated net sales and other operating revenue for the fourth quarter amounted to 2,101.0 billion yen ($15,768 million), an increase of 14.4 percent over Q4, 2001.

In addition to higher sales, currency translation effects (which had a positive impact on foreign currency-denominated revenue from Honda’s overseas subsidiaries) translated into yen, contributed to the increase.

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Honda said that, had the yen exchange rate remained unchanged from the same period in 2001, revenue for the quarter would have increased by about 6.1 percent.

Consolidated operating income for the fiscal fourth quarter reached 169.2 billion yen ($1,270 million), an increase of 55.1 percent compared to 2001.

This increase in operating income was due mainly to higher car sales in Japan and strong sales of light truck and SUV models in North America. Ongoing cost cutting strategies and the depreciation of the yen also contributed to this increase, the company said.

Consolidated income before income taxes for the quarter totalled 160.8 billion yen ($1,207 million), an increase of 48.9 percent.

Honda’s car and light truck volume including SUVS increased 4.6 percent to 726,000 units for the last quarter, due primarily to strong sales, especially in Japan, of small cars such as the Fit (Jazz in export markets) and the Mobilio, as well as the newly introduced mini-vehicle with the bizarre name of That’s in Japan.

Revenue increased 13.1 percent, to 1,661.8 billion yen ($12,471 million) during the quarter, due to higher sales in Japan and North America.

Motorcycle sales increased by 34.2 percent to 1,752,000 units, and revenue increased 24.6 percent to 301.2 billion yen ($2,261 million). The increase was due primarily to higher sales in Asian countries such as Indonesia, India and Thailand. Increased unit sales in the United States and Brazil also contributed.

Unit sales of power products totaled 1,429,000 units, an increase of 10.6 percent compared to the corresponding period in 2001, with strong general-purpose engines sales in the United States the major factor.

Revenue from other businesses, including power products and financial services, increased by 10.4 percent to 137.9 billion yen ($1,036 million) due mainly to higher revenue from financial services led by strong car sales in North America.

Honda’s consolidated net income for the fiscal year was a record 362.7 billion yen ($2,722 million), up 56.2 percent from 2000/2001 with basic net income per common share of 372.23 yen ($2.79), compared to 238.34 yen for the previous year.

Unit sales of Honda’s motorcycles, cars and SUVs and power products increased while consolidated net sales and other operating revenue also set a record high, of 7,362.4 billion yen ($55,253 million), up 13.9 percent over last year.

Revenue included the positive effect of currency translation, and Honda estimates that had the exchange rate of the yen remained unchanged from the previous year, revenue for the year would have increased by about 5.3 percent.

Consolidated operating income for the year was 639.2 billion yen ($4,798 million), up 57.1 percent.

Car sales in Japan and North America increased, reflecting strong demand while continuing cost cutting strategies and a weaker yen were the major contributing factors in the operating income boost.

Consolidated income before taxes for the year was 551.3 billion yen ($4,138 million), an increase of 43.2 percent.

Car sales increased 3.3 percent to 2,666,000 units for the fiscal full-year while revenue increased 13.4 percent to 5,929.7 billion yen ($44,501 million) over the previous year.

Strong Fit/Jazz subcompact, Step Wagon (a tiny minivan) and Stream (mid-size minivan) sales in Japan together with increased unit sales of light trucks such as the Acura MDX and Odyssey minivan in North America were primary contributors to the increases, Honda#;s statement said.

Full year motorcycle unit sales increased 19.1 percent to 6,095,000 units, and revenue increased 17.7 percent to 947.9 billion yen ($7,114 million). Unit sales increased in Asian countries such as Indonesia and India as well as in North America during the year.

Unit sales of power products totaled 3,926,000 units, an increase of 1.1 percent compared to the previous fiscal year. Again, strong sales of general-purpose engines in the United States were the major factor.

Power products and financial services showed a 13.5 percent increase to 484.7 billion yen ($3,638 million), due mainly to higher revenue from the finance subsidiaries.

Looking ahead, Honda said “signs of economic recovery in the United States are observed [but] the moderate economic growth in Europe and Asian countries is not expected to remain stable.

“A steady recovery of the economy in Japan is uncertain and, as a whole, the global business environment for the foreseeable future is expected to remain beset.”

Honda added that it expects competition in each of its markets to remain “challenging”.

Forecasting financial results for the fiscal year ending March 31, 2003, Honda projects consolidated results as follows:

First half ending September 30, 2002 (yen):

Net sales and other operating revenue: 4,100 billion (+17.0 percent);

Income before income taxes: 345 billion (+27.8 percent);

Net income: 230 billion (+32.4 percent).

Fiscal year ending March 31, 2003:

Net sales and other operating revenue: 8,100 billion (+10.0 percent);

Income before income taxes: 700 billion (+27.0 percent);

Net income: 460 billion (+26.8 percent).