Honda Motor Co., Ltd. Reports Consolidated Financial Results For the Fiscal Fourth Quarter and the Fiscal Year Ended March 31, 2

Honda Motor Co., Ltd. Reports Consolidated Financial Results For
the Fiscal Fourth Quarter and the Fiscal Year Ended March 31, 2005 


TOKYO, April 26  /PRNewswire-FirstCall/ -- Honda Motor Co., Ltd. today
announced its consolidated financial results for the fiscal fourth quarter and
the fiscal year ended March 31, 2005.

Fourth Quarter Results

Honda's consolidated net income for the fiscal fourth quarter ended March 31,
2005 totaled JPY 94.0 billion (USD 876 million), an increase of 26.9% from the
corresponding period in 2004.  Basic net income per Common Share for the
quarter amounted to JPY 101.43 (USD 0.94), compared to JPY 78.47, an increase
of 29.3% from the corresponding period in 2004.  Two of Honda's American
Depositary Shares represent one Common Share.

Consolidated net sales and other operating revenue (herein referred to as
"revenue") for the quarter amounted to JPY 2,349.5 billion (USD 21,879
million), an increase of 9.5% over the corresponding period in 2004.  Revenue
included a negative effect of currency translation, caused by translation of
foreign currency denominated revenue from Honda's overseas subsidiaries into
yen.  Honda estimates that if the exchange rate of yen had remained unchanged
from that in the corresponding period in 2004, revenue for the quarter would
have increased by approximately 10.8%.

Consolidated operating income for the fiscal fourth quarter totaled JPY 140.3
billion (USD 1,307 million), an increase of 24.3% compared to the corresponding
period in 2004.  This increase in operating income was primarily due to
increased profit from higher revenue, continuing cost reduction effects and
decrease in selling, general and administrative (SG&A) expenses, which offset
the negative impact of, for example, depreciation of the U.S. dollar and an
increase in research and development (R&D) expenses.

Consolidated income before income taxes for the quarter totaled JPY 129.1
billion (USD 1,203 million), an increase of 21.3% from the corresponding period
in 2004.

Business Segment

With respect to Honda's sales in the fiscal fourth quarter by business
category, motorcycle unit sales increased by 3.7% from the corresponding period
in 2004 to 2,716 thousand units.  Of them, unit sales in Japan decreased 9.7%
to 93 thousand units, and overseas unit sales increased 4.2% to 2,623 thousand
units, due mainly to increased unit sales of parts for local production at
affiliates in Indonesia, and favorable sales in Thailand and the Philippines,
as well as strong sales in Other regions, such as Brazil. Revenue from sales to
unaffiliated customers increased 10.5%, to JPY 325.7 billion (USD 3,033
million), due mainly to increased unit sales in Asia and Latin America,
offsetting the negative currency translation effects. Operating income
decreased by 2.0% to JPY 26.9 billion (USD 251 million), due mainly to the
depreciation of the U.S. dollar and an increase in SG&A expenses, which offset
the positive impact of increased profit from higher revenue.

Honda's unit sales of automobiles increased by 8.3% from the corresponding
period in 2004 to 859 thousand units, due to increased overseas unit sales. In
Japan, unit sales of automobiles decreased 7.1% to 195 thousand units and
overseas unit sales increased 13.9% to 664 thousand units.  Strong sales in the
U.S. as a result of attractive models, such as the Acura RL and the Odyssey,
and increased unit sales of parts for local production in China were the major
contributing factors for this increase in overseas unit sales. Revenue from
sales to unaffiliated customers increased 10.4%, to JPY 1,870.0 billion (USD
17,413 million) during the quarter, due to increased unit sales and improved
model mix in North America, offsetting the negative currency translation
effects and decreased sales incentive.  Operating income increased 57.9% to JPY
90.5 billion (USD 844 million) due mainly to increased profit from higher
revenue, ongoing cost reduction effects and decrease in quality-related
expenses, which offset the negative impact of depreciation of the U.S. dollar.

Revenue from sales to unaffiliated customers in financial services increased
12.2% to JPY 64.6 billion (USD 602 million), due to the growth of the
automobile business in North America.  Operating income decreased 23.2% to JPY
18.1 billion (USD 169 million), due primarily to increased funding costs.

Unit sales of power products in Japan totaled 117 thousand units, a decrease by
4.9%.  Overseas unit sales was 1,667 thousand units and total unit sales of
power products were 1,784 thousand units, which was almost same level as
corresponding period in 2004.  Revenue from sales to unaffiliated customers in
power product and other businesses decreased by 9.2% to JPY 89.1 billion (USD
830 million), due mainly to changes in the model mix in power product business.
 Operating income increased 5.5% to JPY 4.6 billion (USD 43 million), due
mainly to improved profit in other businesses, offsetting the negative currency
effects.

Geographic Segment

With respect to Honda's sales for the fourth quarter by geographic segment, in
Japan, revenue for exports and domestic sales was JPY 1,093.3 billion (USD
10,181 million), up by 1.1% compared to the corresponding period in 2004, due
primarily to increased unit sales for exports in the motorcycle and automobile
businesses, although domestic automobile sales decreased.  Operating income in
Japan was JPY 50.6 billion (USD 471 million), down by 43.3%, due primarily to
the negative impact of depreciation of the U.S. dollar, and increases in SG&A
and R&D expenses, which offset the positive impact of increased profit coming
from higher revenue and ongoing cost reduction effects.

In North America, revenue increased by 14.6% from the previous year to JPY
1,284.2 billion (USD 11,959 million), due mainly to increased unit sales in
motorcycle and automobile businesses, offsetting the negative impact of the
currency translation effects.

Operating income in North America increased by JPY 62.9 billion, an increase of
587.0% to JPY 73.6 billion (USD 686 million) from the corresponding period of
the previous year, due primarily to the positive impact of increased profit
from higher sales and decrease in quality-related expenses, offsetting the
negative currency effect of depreciation of the U.S. dollar.

In Europe, revenue for the quarter decreased by 1.9% to JPY 284.6 billion (USD
2,651 million) compared to the corresponding period of the previous year, due
primarily to decreased unit sales for exports in the automobile business,
offsetting the positive impact of increased unit sales for the domestic market
in automobile and power product businesses.  Operating income in Europe
increased by 71.3% to JPY 11.6 billion (USD 108 million), due mainly to
positive currency effects caused by the appreciation of the Euro and ongoing
cost reduction effects.

In Asia, revenue increased by 17.0% to JPY 239.5 billion (USD 2,231 million)
from the corresponding period of the previous year, due mainly to increases in
unit sales in the motorcycle, automobile and power product businesses. 
Operating income decreased by 26.8% to JPY 7.0 billion (USD 65 million) from
the corresponding period of the previous year, due mainly to temporary factors,
such as start-up expenses for the export plant in China, offsetting the
positive impact of increased profit from higher revenue.

In Other regions, unit sales increased in motorcycle and automobile businesses,
and revenue for the fourth quarter increased by 42.3% to JPY 132.6 billion (USD
1,235 million) compared to the corresponding period of the previous year.  An
increased unit sale in Latin America was a major contributing factor to an
increase in revenue.  Operating income increased by 5.6% from the corresponding
period of the previous year to JPY 4.6 billion (USD 43 million), due mainly to
increased profit from higher revenue.

Fiscal Year Results

Honda's consolidated net income for the year ended March 31, 2005 totaled JPY
486.1 billion (USD 4,527 million), an increase of 4.7% from the previous year. 
Basic net income per Common Share for the year amounted to JPY 520.68 (USD
4.85), compared to JPY 486.91 for the previous year.

Consolidated net sales and other operating revenue for the year amounted to JPY
8,650.1 billion (USD 80,549 million), an increase of 6.0% from the previous
year.  Revenue included a negative effect of currency translation caused by
translation of foreign currency denominated revenue from Honda's overseas
subsidiaries into yen, Honda estimates that if the exchange rate of yen had
remained unchanged from that in the previous year, revenue for the year would
have increased by approximately 8.8%.

Unit sales in all of Honda's business categories, motorcycle, automobile and
power product businesses increased during the year, and consolidated operating
income for the year totaled JPY 630.9 billion (USD 5,875 million), an increase
of 5.1% compared to the previous year.  This increase in operating income was
primarily due to the positive impact of increased profit from higher revenue
and ongoing cost reduction effects, which offset negative currency effects of
depreciation of the U.S. dollar, and increases in SG&A and R&D expenses.

Consolidated income before income taxes for the year totaled JPY 656.8 billion
(USD 6,116 million), an increase of 2.3% compared to the previous year.

Business Segment

With respect to Honda's sales for the year by business category, motorcycle
unit sales increased 13.9% to 10,482 thousand units.  Of them, unit sales in
Japan decreased 6.2% to 378 thousand units, while overseas unit sales increased
14.8% to 10,104 thousand, due mainly to strong sales in Asia, such as Indonesia
and India.  Revenue from sales to unaffiliated customers increased 10.2% to JPY
1,097.7 billion (USD 10,222 million), due primarily to increased unit sales in
Asia, offsetting negative currency translation effects.  Operating income
increased 63.4% to JPY 69.3 billion (USD 646 million), due mainly to increased
profit from higher revenue and ongoing cost reduction effects, which offset the
negative currency effects of depreciation of the U.S. dollar.

Unit sales related to automobiles for the year increased by 8.7% to 3,242
thousands units.  In Japan, unit sales of automobiles was 712 thousand units,
almost the same level as the previous year, and overseas unit sales increased
11.6% to 2,530 thousand units, due mainly to increased unit sales of parts for
local production in China, and increased sales in Europe and North America.
Revenue from sales to unaffiliated customers increased 5.6% to JPY 6,963.6
billion (USD 64,844 million), due mainly to increased unit sales in Asia and
Europe, and improved model mixes in domestic automobile business, offsetting
the negative currency translation effects.  Operating income increased 3.1% to
JPY 452.3 billion (USD 4,213 million), due mainly to the positive impact of
increased profit from higher revenue and cost reduction effects, offsetting the
negative impact of depreciation of the U.S. dollar and increased sales
incentive expenses.

Revenue from sales to unaffiliated customers in financial services increased
5.4% to JPY 255.7 billion (USD 2,381 million), due to an increased
finance-subsidiaries receivables from growth of businesses.  Operating income
decreased 17.1% to JPY 89.9 billion (USD 837 million), due mainly to increased
funding costs.

Unit sales of power products totaled 5,300 thousand units, an increase of 5.0%
compared to the previous year.  Of them, unit sales in Japan totaled 432
thousand units, decreased by 9.4%, and overseas unit sales increased 6.5% to
4,868 thousand units, mainly as a result of increased unit sales in North
America and Asia.  Revenue from sales to unaffiliated customers increased by
0.4% to JPY 332.9 billion (USD 3,101 million), due mainly to increased unit
sales in power product business in North America and Asia.  Operating income
increased 85.9% to JPY 19.3 billion (USD 180 million), due to increased profit
from higher revenue in power product business and an increased profit in other
businesses, offsetting the negative currency effect of depreciation of the U.S.
dollar.

Geographic Segment

With respect to Honda's sales for the year by geographic segment, in Japan,
revenue was JPY 4,138.9 billion (USD 38,541 million), up by 5.3% from the
previous year, due mainly to increased export sales in motorcycle and
automobile businesses.  Operating income in Japan was JPY 184.8 billion (USD
1,722 million), down by 3.9% from the previous year, due primarily to the
negative currency impact caused by depreciation of the U.S. dollar, and
increases in SG&A and R&D expenses, which offset the positive impact of
increased profit from higher revenue and cost reduction effects.

In North America, revenue increased by 0.7% from the previous year to JPY
4,705.5 billion (USD 43,817 million), due mainly to increased unit sales in the
automobile and power product businesses, which offset the negative currency
translation effects.  Operating income in North America increased by 3.5% to
JPY 321.1 billion (USD 2,991 million) from the previous year, due primarily to
increased profit coming from higher revenue and an decrease in quality-related
expenses, which offset the negative currency impact of depreciation of the U.S.
dollar and increased sales incentive expenses.

In Europe, revenue for the year increased by 10.0% to JPY 1,043.0 billion (USD
9,713 million) compared to the previous year, due mainly to increased unit
sales in the motorcycle, automobile and power product businesses, and the
positive impact of currency translation effects.  Operating income in Europe
increased by 59.6% to JPY 41.2 billion (USD 384 million), due mainly to the
positive currency impact caused by appreciation of the Euro, increased profit
from higher revenue and cost reduction effects.

In Asia, revenue increased by 22.2% to JPY 860.5 billion (USD 8,013 million)
from the previous year, due primarily to increased unit sales in all business
segments, namely motorcycle, automobile and power product businesses,
offsetting the negative currency translation effect. Operating income also
increased by 35.9% to JPY 60.6 billion (USD 565 million) from the previous
year, due to increased profit from higher revenue, which offset the negative
impact of an increase in SG&A.

Revenue from Other regions for the year increased by 33.8% to JPY 465.9 billion
(USD 4,339 million) compared to the previous year, due primarily to increased
unit sales in the motorcycle, automobile and power product businesses in Latin
America, offsetting the negative currency translation effect.  Operating income
increased by 39.5% to JPY 33.1 billion (USD 309 million) from the previous
year, due mainly to increased profit coming from higher revenue.

Forecasts for the fiscal year ending March 31, 2006

The global economy, driven primarily by the U.S. and Asian economies, is
expected to grow steadily, but the pace of growth is anticipated to slowdown.
Also, the global management environment still lacks transparency because of
global political and economic uncertainty, fluctuations in oil prices, and
currency movements.  In Japan, the economic recovery has become more moderate,
and weak consumer spending is anticipated to continue.  As a result,
competition in the Japanese market is expected to intensify. Under such
circumstances, in regard to the forecasts of the financial results for the
fiscal year ending March 31, 2006, Honda projects consolidated results to be as
shown below:

  First half ending September 30, 2005
                                       Yen (billions)   Changes from FY 2005

   Net sales and other operating revenue    4,560              +9.4%
   Operating income                           295             -11.4%
   Income before income taxes                 280             -17.6%
   Net income                                 205             -15.1%

  Fiscal year ending March 31, 2006
                                       Yen (billions)   Changes from FY 2005

   Net sales and other operating revenue    9,300              +7.5%
   Operating income                           650              +3.0%
   Income before income taxes                 615              -6.4%
   Net income                                 450              -7.4%



These forecasts are based on the assumption that the average exchange rates for
the yen to the U.S. dollar and the euro for the first half of the year ending
September 30, 2005 will be JPY 105 and JPY 135, respectively, and for the full
year ending March 31, 2006, JPY 105 and JPY 135, respectively.

  Dividend per Share of Common Stock for the fiscal year ending
   March 31, 2006


For the year ending March 31, 2006, the Company plans to increase the interim
cash dividend by 9 yen to JPY 37 per share.  It also projects that the year-end
cash dividend will be JPY 37 per share.  As a result, total cash dividends for
the year ending March 31, 2006 are expected to be JPY 74 per share, an increase
of 9 yen per share from that for the year ended March 31, 2005.

This announcement contains forward-looking statements within the meaning of
Section 21E of the U.S. Securities Exchange Act of 1934. Honda's actual results
could materially differ from those contained in these forward-looking
statements as a result of numerous factors outside of Honda's control. Such
factors include general economic conditions in Honda's principal markets, and
foreign exchange rates between the Japanese yen and other major currencies, as
well as other factors detailed from time to time in Honda's reports filed with
the U.S. Securities and Exchange Commission. 

DATASOURCE: Honda Motor Co., Ltd.



CONTACT:  Tetsuo Oshima, [phone], x.16 for Honda Motor Co., Ltd.

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