Honda 2008 Annual Report Download - page 32

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Honda’s sales of power products in fiscal 2008 totaled 6,057,000 units, down 5.7% from the
previous fiscal year.
Revenue increased 0.8%, to ¥421.1 billion, due mainly to the positive impact of foreign cur-
rency translation effects. Operating income declined 38.2%, to ¥22.3 billion, from the previous
fiscal year, due mainly to the negative impact of the increased SG&A expenses and an increase of
R&D expenses in other businesses, which offset the positive impact of the foreign currency effects
caused by the appreciation of the European currencies.
In Japan, unit sales grew 4.4%, to 550,000 units. These gains were due primarily to higher sales of
pumps, sales of GX series engines for electric power generators and other products on an original
equipment manufacturer (OEM*) basis and sales of compact, home-use cogeneration systems
for household use.**
Sales in North America declined 22.2%, to 2,415,000 units. Factors accounting for these declines
were weakness in sales of engines for OEM use in high-pressure washers and lawn mowers and
weakness in sales of lawn mowers, generators and other products, due mainly to the slowdown
in the housing market caused by the subprime loan issue mainly in the United States.
In Europe, sales expanded 4.2%, to 1,693,000 units. Sales of GCV series engines for OEM use in
lawn mowers and sales of GX series engines for OEM use in generators, construction machinery
and other applications expanded.
Unit sales in Asia, excluding Japan, increased 20.4% from the previous fiscal year, to 915,000
units, as a result of higher sales of general-purpose engines in China, general-purpose engines
and pumps in Indonesia and India as well as other factors.
In Other Regions, unit sales for fiscal 2008 rose 19.2%, to 484,000 units, mainly as a result of
increased sales of general-purpose engines in Brazil and higher sales of electric power generators
in Australia and South Africa.
Power Product and Other Businesses
GCV 191
Cogeneration system for household use
* OEM (original equipment manufacturing): OEM refers to the manufacturing of products and components supplied
for sale under a third-party brand.
** Compact, home-use cogeneration systems: Honda has applied its original electromagnetic inverter technologies to
create small and light-weight electronic power generation systems built with an efficient layout. These systems are
compact and suitable for home use and have an overall energy efficiency of 85%.
GX 630
Power Product and Other Businesses
Japan
North America
Europe
Asia
Other Regions
Annual Report 2008
30