Honda 2009 Annual Report Download - page 11

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We would like to express our gratitude to you, our shareholders, for your
ongoing support. We would also like to thank the many people who have
supported Honda’s long-term growth, including, first and foremost, our
customers as well as our business partners and the societies around the
world where we are privileged to do business.
Business Environment
Concerning the economic environment surrounding Honda during the fiscal
year ended March 31, 2009, crude oil and raw material prices significantly
increased worldwide in the first half, followed by declines in the second half.
Although the economies in the United States and Europe continued to grow in
the first half, they began to deteriorate in the second half, triggered by the
financial crisis, creating a downward spiral leading to concern of even further
deterioration of the real economy. In Asia, although the economies of China
and India continued to expand, the pace of growth slowed, and certain
countries in the region went into recession. Japan showed signs of a rapid
deterioration in economic conditions, such as decreased consumer spending
and a decline in capital expenditures.
Under these business conditions, Honda’s consolidated revenue for the fiscal
year ended March 31, 2009 amounted to ¥10,011.2 billion, a decrease from
the previous fiscal year, primarily due to decreased unit sales in automobile
business and negative currency translation effects. Net income declined to
¥137.0 billion, and net income per common share decreased, to ¥75.50.
Annual Report 2009 9