Honda Q1 Results | TheDetroitBureau.com
Detroit Bureau on Twitter

Posts Tagged ‘Honda Q1 results’

Honda Q1 Net Income Drops 96% as Revenue Dives

Still, the Japanese company ekes out a small profit for the quarter, but the auto business is losing money.

by on Jul.29, 2009

Honda Motor Company, Ltd. net income for the fiscal first quarter ended June 30, 2009 totaled ¥7.5 billion ($79 million), a decrease of 95.6% from the same period in 2008. Net income per common share for the quarter amounted to ¥4.17 ($0.04), a decrease of ¥91.39 from ¥95.56 for the corresponding period last year. (One Honda American Depository Share represents one common share.)

Consolidated net sales and other operating revenue for the quarter amounted to ¥2,002.2 billion (USD 20,854 million), a decrease of 30.2% from the same period in 2008, primarily due to decreased revenue in the automobile business and unfavorable currency translation effects. Honda estimates that if calculated at the same exchange rate as the corresponding period in 2008, revenue for the quarter would have decreased by approximately 20.7%. Critics have long maintained that the Japanese government manipulates the yen to help its export dependent economy.

Honda

Yen (billions)

Q1 ending

June 30 ’08

Q1 ending

June 30, ’09

Difference

(% change)

Net sales and other operating revenue

2,867.2

2,002.2

-865.0

(-30.2)

Operating income

210.4

25.1

-185.3

(-88.0)

Income before Income taxes

224.2

5.4

-218.7

(-97.6)

Equity in income of affiliates

38.1

14.2

-23.9

(-62.7)

Net Income attributable to Honda Motor Co., Ltd.

173.3

7.5

-165.8

(-95.6)

Exchange rate: Honda’s average rates for this fiscal 1st quarter: JPY 97=USD1 / JPY 132=Euro1. Honda’s average rates for the previous fiscal 1st quarter: JPY 105=USD1 / JPY 164=Euro1

Honda’s consolidated operating income for the quarter totaled ¥25.1 billion ($262 million), a decrease of 88%, due primarily to decreased profit attributable to decreased revenue, the increase in fixed costs per unit as a result of reduced production and the unfavorable impact of currency effects caused by the appreciation of the Japanese yen.

Consolidated income before income taxes and equity in income of affiliates for the quarter totaled ¥5.4 billion ($57 million), a decrease of 97.6% from the same period in 2008. Equity in income of affiliates amounted to ¥14.2 billion ($148 million) for the quarter, a decrease of 62.7% from the corresponding period last year.

Sales in all of Honda’s business units for the quarter were negatively affected by the ongoing Great Recession.

(more…)