Honda Fiscal '09 Income Plummets 77%

Honda Motor Co. Ltd. net income for its business year ended March 31 was 137.0 billion yen ($1.4 billion), down 77 percent from income of 600 billion yen in the previous year; revenue was 10.0 trillion yen ($103.52 billion), down 17 percent from 12.0 trillion yen.

Honda sold 10.114 million motorcycles and ATVs during its recently ended business year, up 8.5 percent compared to sales of 9.320 million units during the previous year.

Motorcycle business net revenue totaled 1.411 trillion yen ($14.60 billion), down from 1.558 trillion yen last year. Revenue was impacted by a decrease in sales of high margin, large displacement units in mature markets and an increase in sales of lower margin, small displacement units in burgeoning markets.

Honda says demand in the North America, Japan and Europe declined “significantly” but remained “favorable” in Brazil, India and Other Regions. The OEM sold 320,000 units to North America, down from 453,000 units last year; 276,000 units to Europe, down from 313,000 units; 232,000 units to Japan, down from 311,000 units; 7.523 million units to Asia, up from 6.633 million units; 1.763 million units to Other Regions, up from 1.610 million units; and approximately 4.700 million units worth of parts sales to Honda affiliates accounted for under the equity method, up from 4.580 million units.

Honda forecasts motorcycles sales of 8.595 million units for the fiscal year ending March 31, 2010. “A further downturn due to the negative economic cycle is feared,” company officials say.

2004 …9.206 million units
2005 …10.482 million units
2006 …10.271 million units
2007 …10.369 million units
2008 …9.320 million units
2009 …10.114 million units