TOKYO, JAPAN – June 14, 2011 – (Motor Sports Newswire) – Honda Motor Co., Ltd. held an extraordinary board meeting and resolved the forecasts for consolidated financial results for the current fiscal year ending March 31, 2012, which were not available on April 28, 2011 when the company announced financial results for the previous fiscal year ended March 31, 2011.
Concerning automobile production which has been impacted due to the restricted supply of parts after the Great East Japan Earthquake, production in Japan is expected to be nearly normalized in late June and production in regions outside of Japan is expected to be nearly normalized in the August/September timeframe. Honda will strive to recover sales based on the recovery of production; however, global unit sales for automobile business is expected to be 3.3 million units due to the restricted supply of parts which will continue for a certain models/types.
Honda’s current forecasts for the consolidated financial results for the fiscal year ending March 31, 2012 are described below, with assumption of the average currency exchange rates of JPY 80 = USD 1 and JPY 110 = Euro 1.
- Net sales and other operating revenue: 8,300 billion yen (7.1% decline compared to the previous fiscal year)
- Operating income: 200 billion yen (64.9% decline compared to the previous fiscal year)
- Equity in income of affiliates: 100 billion yen (28.4% decline compared to the previous fiscal year)
- Net income*1: 195 billion yen (63.5% decline compared to the previous fiscal year)
Decline in operating income compared to the previous fiscal year is mainly because of a decline in automobile unit sales due to the impact of the earthquake, cost of restoration and/or removal of damaged property and equipment, the unfavorable currency effects, increased raw material costs and increased R&D expenses related to the development of next generation products and stepped up development of environmental technologies.
The total annual dividend to be paid for this fiscal year is expected to be 60 yen per share, an increase of 6 yen pershare compared to the previous fiscal year.
Mar. 31, 2011
Mar. 31, 2012
|Net sales and other operating revenue||8,936.8||8,300.0||-636.8||-7.1%|
|Equity in income
|Annual Dividends per share||54||60||+6||–|
|Honda’s Average Rates (Yen)||USD =||86||80||Yen up by 6 yen|
|EUR =||114||110||Yen up by 4 yen|
*1 Net income attributable to Honda Motor Co., Ltd. based on U.S. generally accepted accounting principles.
*2 Unit sales of approximately 2.61 million units for the current fiscal year ending March 31, 2012 of Honda-brand motorcycle products that are manufactured and sold by overseas affiliates accounted for under the equity method but do not use any parts supplied from Honda and its consolidated subsidiaries, are not included in the total sales of the motorcycle segment or in the measure of unit sales, in conformity with U.S. generally accepted accounting principles.
*3 Certain sales of automobiles that are financed with residual value type auto loans by Honda’s Japanese finance subsidiaries are accounted for as operating leases in conformity with U.S. generally accepted accounting principles. As a result, they are not included in the total sales of the automobile segment or in the measure of unit sales.