Honda 2011 Annual Report Download - page 9

Download and view the complete annual report

Please find page 9 of the 2011 Honda annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 80

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80

Turning to the economic environment during the fiscal year, in the United States, persona
l
consumption and private capital investment increased gradually, and the economy was
on a moderate recovery trend; however, credit contraction and high rates of unem-
ployment persisted. In Europe, economic conditions, in general, improved along with
increases in consumer spending and other developments, but unemployment remained
high, and there was concern regarding the financial system. In Asia, the economies of
China and India expanded, and the remaining countries in the region generally reported
recoveries. In Japan, the economy moved into a lull, and, although private capital invest-
ment showed some improvement, tough operating conditions continued as trends in
consumer spending were weak in some areas and unemployment remained high. It
is forecast that the Great East Japan Earthquake will have a depressing impact on the
economy for the near term.
Under these business conditions, Honda’s consolidated net sales and other operating
revenue for the fiscal year ended March 31, 2011 expanded over the previous fiscal year,
despite unfavorable currency translation effects, as a result of increases in the sales of
motorcycles, automobiles and other Honda products. Such adverse factors as higher
selling, general and administrative expenses, increased R&D expenditures, foreign cur-
rency movements and the effects of the earthquake had some negative impact. However,
operating income and net income attributable to Honda Motor Co., Ltd. grew, reflecting
such positive factors as the increase in net sales, changes in the mix of sales, the benefit
of higher production volume on costs and overall cost-cutting activities.
Total unit sales of motorcycles increased from the previous fiscal year because of higher sales
in Asia and other regions, including South America.
In Asia, expansion in demand was robust, supported by strong economic performance.
In particular, sales in Thailand of Honda’s new Wave 110i and the Scoopy i as well as sales in
India of the new CB Twister and the Activa acted as driving forces in bringing a major gain
in sales. On the other hand, in North America, where demand did not fully recover, despite
a moderate recovery mainly in the sales of utility all-terrain vehicles (ATVs), recovery in the
sales of sports ATVs used mainly for recreation and motorcycles for recreation was lagging.
Sales in other areas, including South America, picked up after mid-year because of
the increased availability of credit and improvement in income. Sales of the CG150FAN,
NXR150, CG125 and other models were strong, mainly in the Brazilian market.
Motorcycle Business
7