Honda 2010 Annual Report Download - page 41

Net Income
Net income increased ¥131.6 billion, or 87.2%, to ¥282.6 billion
from the previous fiscal year.
Net Income Attributable to Noncontrolling Interests
Net income attributable to noncontrolling interests increased ¥0.2
billion, or 2.0%, to ¥14.2 billion from the previous fiscal year.
Net Income Attributable to Honda Motor Co., Ltd.
Net income attributable to Honda Motor Co., Ltd. increased ¥131.3
billion, or 95.9%, to ¥268.4 billion from the previous fiscal year.
the positive foreign currency effects. Selling, general and
administrative expenses decreased by ¥60.2 billion, or 24.1%, to
¥189.9 billion. R&D expenses decreased by ¥20.7 billion, or 24.3%,
to ¥64.7 billion, from ¥85.5 billion.
Operating income decreased ¥41.0 billion, or 41.1%, to ¥58.8
billion from the previous fiscal year, due mainly to a decrease in
income attributable to the decreased net sales and negative foreign
currency effects, which was partially offset by decreased selling,
general and administrative expenses and R&D expenses.
Automobile Business
Honda’s unit sales of automobiles totaled 3,392 thousand units,
decreased by 3.6% from the previous fiscal year. Unit sales in Japan
totaled 646 thousand units, increased by 16.2%. Overseas unit
sales totaled 2,746 thousand units, decreased by 7.3%, due mainly
to a decrease in unit sales in North America and Europe, which was
partially offset by an increase in unit sales in Asia.
Revenue from external customers decreased ¥1,119.5 billion, or
14.6%, to ¥6,554.8 billion from the previous fiscal year, due mainly
to decreased unit sales and the negative foreign currency translation
effects. Honda estimates that by applying Japanese yen exchange
rates of the previous fiscal year to the current fiscal year, net sales for
the year would have decreased by approximately ¥625.1 billion, or
8.1%, compared to the decrease as reported of ¥1,119.5 billion,
which includes negative foreign currency translation effects.
Operating costs and expenses decreased ¥1,221.7 billion, or
16.0%, to ¥6,428.0 billion from the previous fiscal year. Cost of sales
decreased by ¥790.4 billion, or 13.5%, to ¥5,066.5 billion, due
mainly to a decrease in costs attributable to the decreased net sales,
the positive foreign currency effects and continuing cost reduction.
Selling, general and administrative expenses decreased by ¥354.9
billion, or 26.3%, to ¥992.1 billion, due mainly to the impact of
expenses in the previous year which related to withdrawal from
some racing activities and cancellations of development of new
models and the positive foreign currency effects. R&D expenses
decreased by ¥76.3 billion, or 17.1%, to ¥369.3 billion, from ¥445.7
billion, due mainly to improving development efficiency, while
improving safety and environmental technologies and enhancing of
the attractiveness of the products.
Operating income increased ¥102.2 billion, or 416.5%, to ¥126.7
billion from the previous fiscal year, due mainly to decreased selling,
general and administrative expenses and R&D expenses and
continuing cost reduction, which was partially offset by a decrease
in income attributable to the decreased net sales and negative
foreign currency effects.
Power Product and Other Businesses
Honda’s unit sales of power products totaled 4,744 thousand units,
decreased by 8.5% from the previous fiscal year. Unit sales in Japan
totaled 322 thousand units, decreased by 37.6%. Overseas unit
sales totaled 4,422 thousand units, decreased by 5.3%, due mainly
to decreased unit sales in Europe and North America, which was
partially offset by increased unit sales in Asia.
Business Segments
Motorcycle Business
Honda’s unit sales of motorcycles, all-terrain vehicles (ATVs) and
personal watercraft (PWC) totaled 9,639 thousand units, decreased
by 4.7% from the previous fiscal year. Unit sales in Japan totaled
190 thousand units, decreased by 18.1%. Overseas unit sales
totaled 9,449 thousand units, decreased by 4.4%, due mainly to a
decrease in unit sales in Other Regions, including South America,
and North America, which was partially offset by an increase in unit
sales in Asia.
Revenue from external customers decreased ¥271.2 billion, or
19.2%, to ¥1,140.2 billion from the previous fiscal year, due mainly
to decreased unit sales and the negative foreign currency translation
effects. Honda estimates that by applying Japanese yen exchange
rates of the previous fiscal year to the current fiscal year, net sales for
the year would have decreased by approximately ¥141.2 billion, or
10.0%, compared to the decrease as reported of ¥271.2 billion,
which includes negative foreign currency translation effects.
Operating costs and expenses decreased ¥230.1 billion, or
17.5%, to ¥1,081.4 billion from the previous fiscal year. Cost of sales
decreased by ¥149.1 billion, or 15.3%, to ¥826.7 billion, due mainly
to a decrease in costs attributable to the decreased net sales and
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Net Income Attributable to Honda Motor Co., Ltd.
and Net Income Attributable to Honda Motor Co., Ltd.
per Common Share
Years ended March 31
2006 2007 2008 2009 2010
Net Income Attributable to Honda Motor Co., Ltd. (left)
Net Income Attributable to Honda Motor Co., Ltd. per Common Share (right)
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