Honda Motor Co., Ltd. said its consolidated net income for the fiscal first quarter ended June 30, 2004 totaled $1.054 billion, an increase of 12.2% from the corresponding period in 2003. Basic net income per common share for the quarter amounted to $1.12, compared to 93 cents for the same period in 2003. Two of Honda’s American Depositary Shares represent one common share.
Honda said motorcycle unit sales increased by 29.0% to 2.58 million units, increasing revenue 13.5% to $2.528 billion. Exported unit sales increased 30.3% to nearly 2.49 million units.
Although Honda’s North American unit sales in motorcycles and power products increased, the company said total revenue from its main market decreased 6.4% from the corresponding period of the previous year to $10.464 billion due to negative currency translation effects. Operating income also decreased by 25.8% to $744 million from the previous year.
Honda said consolidated net sales and other operating revenue for the quarter was $19.120 billion, an increase of 3.2% compared to the corresponding period in 2003. The company said revenue was negatively affected by currency translation. Honda estimates that if the exchange rate of yen had remained unchanged from that in the corresponding period in 2003, revenue for the quarter would have increased by approximately 7.7%.
Consolidated operating income for the fiscal first quarter totaled $1.476 billion, an increase of 0.3% compared to the corresponding period in 2003. This increase in operating income was due primarily to an increase in revenue contributed by higher unit sales of automobiles, motorcycles and power products and ongoing cost reduction effects, which offset the negative effects of the depreciation of the U.S. dollar, according to the manufacturer.
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