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Honda results: Rising yen halves 9-month revenue growth

Honda's consolidated net income for the fiscal third quarter ended December 31, 2003 totalled Y151.0 billion (US$1,410 million), a year-on-year increase of 31.2%.

Unit sales in all of Honda's business categories increased during the fiscal third quarter but revenue for the quarter amounted to Y1,992.2 billion (US$18,597 million), unchanged year on year. Honda estimates that had the yen exchange rate remained unchanged from the same period in 2002, revenue for the quarter would have increased by approximately 6.3%.

For the fiscal nine months ended December 31, 2003 Honda's consolidated net income was Y390.2 billion (US$3,643 million), an increase of 25.9% from the previous year. Revenue for the fiscal nine-month period amounted to Y6,017.6 billion (US$56,172 million), an increase of 3.0% from last year. Honda estimates that if the yen exchange rate had not changed from the previous year, revenue for the year would have increased by approximately 6.7%.

Consolidated operating income for the fiscal nine months was Y463.0 billion (US$4,322 million), a decrease of 4.1% compared with the corresponding period last year. This decrease in operating income was primarily due to negative impacts, such as appreciation of the yen, an increase in selling, general and administrative expenses and research and development expenses, which offset increased profit from higher revenue and continuing cost reduction.

Honda's consolidated income before income taxes for the fiscal nine months totalled Y535.4 billion (US$4,998 million), an increase of 23.8% compared with the previous year. Both Honda's revenue and operating income in Europe for the fiscal nine months increased by 17.9% to Y658.4 billion (US$6,146 million), and 405.7% to Y18.8 billion (US$176 million), respectively. This increase was due mainly to increased vehicle sales as well as the positive impact of currency translation effects on Honda's European operations.



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