TOKYO -

Not only did the recent disasters in Japan have a significant downward impact on Honda’s most recent financial results, but it is keeping the Japanese automaker from being able to offer guidance for its next six-month and full-year fiscal periods.

Honda’s consolidated net income swooned 38.3 percent for the January through March period (which is the company’s fiscal fourth quarter) as it came in at 44.5 billion yen, which translates to $536 million USD.

The drop in consolidated operating income was even harsher, as it dropped 51.9 percent to 46.2 billion yen ($556 million).

Even though the automaker enjoyed some positive results in some areas — like cost-reduction strategies, R&D cost-cutting and more robust sales volume, model mix and licensing agreement-related operating income — these were not enough to overcome higher SG&A costs, unfavorable foreign currency effects and the March 11 disasters, all of which helped push the near 52-percent drop.

The financial impact of the disasters to Honda and its domestic consolidated subsidiaries was 45.72 billion yen in losses, the company noted.

Breaking that figure down, cost of sales included 17.45 billion of that sum, with remaining 28.27 billion yen seen “in the accompanying consolidated statement of income for the year ended March 31, 2011.”

Honda explained that: “The losses mainly consist of unallocated fixed production overhead of JPY 15,062 million yen which is included in cost of sales, and loss on damaged property, plant and equipment of JPY 15,647 million which is included in selling, general and administrative.

“The company and its domestic consolidated subsidiaries did not recognize the costs of future restoration activities expected to be incurred in the next fiscal year in the current year consolidated financial statements,” it added.

And it appears the disasters have also created an inability to project where the automaker’s financial results may be headed in the next four fiscal quarters.

“The company is currently unable to reasonably calculate forecasts of the consolidated financial results for the fiscal six months ending Sept. 30, 2011, or for the fiscal year ending March 31, 2012, due to the impact of the Great East Japan Earthquake that occurred on March 11, 2011,” Honda said in a statement.

“Therefore, the company will release the forecasts of the consolidated financial results for the fiscal six months ending Sept. 30, 2011 and for the fiscal year ending March 31, 2012, as soon as they become available,” it added.

Moving along, the automaker’s fourth-quarter revenue of 2.21 trillion yen ($26.62 billion USD) was down 2.9 percent year-over-year

Auto Business Unit

Looking specifically at the company’s automobile business unit, it sold 860,000 vehicles, which is 1.6-percent softer than the year-ago period. Pushing this drop-off was softer sales in Japan despite increased North American unit sales.

Honda said it took a 39.1 billion yen operating loss ($471 million) during the period after notching a 24 billion yen gain the prior-year period. Officials cited the major factors pushing this decline as being “increased SG&A expenses, unfavorable foreign currency effects and the impact of the earthquake, despite continuing cost reduction efforts and decreased R&D expenses.”

Full-Year Results

Looking at the companywide full-year results for the fiscal year that wrapped up at the end of March, the comparisons were much more favorable.

Honda’s consolidated net income came in at 534 billion yen ($6.42 billion USD), which marks a 99-percent year-over-year spike.

Consolidated revenue climbed 4.2 percent to 8.94 trillion yen ($107.48 billion USD). Officials attributed this “to increased revenue in the automobile business and the motorcycle business, despite the unfavorable currency translation effects.”

The company contends that if the exchange rate were the same both years, the revenue hike would have been even steeper at about 8.7 percent.

Meanwhile, Honda pulled in consolidated operating income of 596.7 billion yen ($6.85 billion USD). This marked a 56.6-percent hike and was mostly attributable to stronger sales volume and model mix as well as fixed-cost reductions.

These positive factors were able to overcome higher SG&A and R&D expenses, unfavorable foreign currency effects, and the disaster’s impact.