Honda Motor Co., Ltd., announced today that it experienced decreases in net sales, operating revenue, net income and operating income for its fiscal third quarter despite an increase in motorcycle unit sales.
Consolidated net sales and operating revenue for the quarter ending Dec. 31, 2011, decreased 8 percent to about $25 billion due to unfavorable foreign currency effects and decreased revenue in the auto business caused by a supply chain disruption following flooding in Thailand. The company's consolidated net income was down 41.2 percent to $613 million. And consolidated operating income dropped 64.7 percent to $570 million due to a decrease in sales volume and model mix, an increase in fixed costs per unit, raw material price increases and unfavorable foreign currency effects.
Despite this, motorcycle unit sales rose 6.3 percent over the year-ago quarter to nearly 3.1 million units. Increases were found in Asia and other regions, including South America. Power products unit sales dropped 11.8 percent to 1 million units due to a decrease in unit sales in all regions. Automobile sales decreased 2.9 percent to 830,000 units mostly due to the impact of the Thai flooding. Revenue from customers in Honda's financial services business dropped 8.5 percent to $1.6 billion, mostly due to foreign currency effects.
For the fiscal year ending March 31, 2012, Honda forecasts motorcycle unit sales to reach 12.6 million, an increase of 1.2 million units from the 2011 fiscal year. Its power product and other business unit sales are projected to increase by 341,000 units to 5.9 million.