Honda 2011 Annual Report Download - page 29

Honda’s unit sales of power products totaled 5,509 thousand units, an increase of 16.1% compared with the previ-
ous fiscal year, due to increased unit sales in all the regions.
Revenue from external customers increased ¥14.9 billion, or 5.4%, to ¥292.6 billion from the previous fiscal
year, due mainly to the increased unit sales of power products, which were partially offset by unfavorable foreign cur-
rency 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 increased by approximately ¥27.5 billion, or 9.9%, compared
to the increase as reported of ¥14.9 billion, which includes negative foreign currency translation effects. Revenue
including intersegment sales increased ¥13.6 billion, or 4.5%, to ¥318.2 billion from the previous fiscal year.
The operating loss including that of other business was ¥5.5 billion, an improvement of ¥11.1 billion from the
previous fiscal year, due mainly to an increase in income attributable to increased net sales of power products, which
was partially offset by increased selling, general and administrative expenses and unfavorable foreign currency effects.
Power Product and Other Businesses
Unit sales in Other Regions increased 14.5% over the previous
fiscal year, to 537 thousand units. Factors accounting for this
increase were favorable sales of general-purpose engines for
OEM use for installation in construction machinery and pumps
to the Middle East and South America, due mainly to eco-
nomic recovery.
In October 2007, Honda’s consolidated subsidiary Honda Soltec
Co., Ltd. began production of thin-film solar cell modules for
household use, which have been sold through homebuilders,
construction companies and other channels in Japan. In Octo-
ber 2008, Honda Soltec began serving customers in the public
sector and industrial markets, including the Hanshin Koshien
Stadium, logistics centers/warehouses and hospitals. In 2011,
new thin-film solar cells will go on sale that are even more com-
pact and feature more-efficient conversion of solar energy to
electric power.
In April 2011, a Honda aero business subsidiary, Honda Aircraft
Company, Inc., completed construction of its plant for the fab-
rication of aircraft fuselages at the Piedmont Triad International
Airport in Greensboro, North Carolina, in the United States. In De-
cember 2010, the company successfully completed the first test
flight of the production model of HondaJet.
Next, the aircraft will undergo flight, structural and other tests
aimed at obtaining type certifications from the Federal Aviation
Administration in the United States and the European Aviation
Safety Agency. Preparations are under way to begin production
in the first half of 2012, and the first HondaJets are slated to be
delivered to customers in the latter half of 2012.
In the area of aircraft engine business, Honda Aero, Inc., a
wholly owned subsidiary of Honda that is responsible for aero
engine business, is making progress with certification tests with
the goal to obtain certification for its HF120 turbofan jet engines
before the end of the current fiscal year ending March 31, 2012.
Other Regions
Solar Cell Business
Aviation Business
In the power products business during the fiscal year under
review, Honda’s sales increased 20.5%, to 388 thousand units.
This was due to an increase in sales of general-purpose engines
for OEM use to manufacturers of construction machinery in the
United States and in the Middle East and Africa as well as an in-
crease in Japan in sales of electric power generators, tillers, snow
blowers and other types of machinery. In May 2010, Honda new-
ly launched the ENEPO EU9iGB, a gas-powered electric power
generation unit that runs on household butane gas canisters.
Japan
Honda’s consolidated unit sales in North America increased
14.7%, to 2,085 thousand units. This increase was due to higher
sales of general-purpose engines for OEM use to manufacturers
of lawn mowers, construction machinery, pressure washers and
other machinery as well as increased sales of generators accom-
panying the recovery in the economies of the region.
North America
In Europe, consolidated unit sales increased 10.1% over the
previous fiscal year, to 1,174 thousand units, because of strong
demand for general-purpose engines for OEM use in construc-
tion machinery and generators as well as sales of snow blowers,
despite intensified competition in the lawn mower market.
Europe
In Asia outside of Japan, consolidated unit sales increased
23.9%, to 1,325 thousand units. This increase was due to
favorable sales of engines for agricultural equipment and
pumps, generators and brush cutters supported by economic
expansion in the region, and continuation of government subsi-
dies for farm households. Weather conditions also contributed
to increased sales.
Asia
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