Honda Motor Co. on Friday reported the first declines in six years in both pretax profit and sales on a consolidated basis for fiscal 1999, due chiefly to the yen's appreciation and rising costs of research and development.

Honda executives said the firm posted 416 billion yen in pretax profit on a group basis in the year that ended March 31, down 20.1 percent from the previous year.

The automaker also reported 6.1 trillion yen in group sales, down 2.1 percent from a year earlier. Operating profit fell 22.3 percent to 426 billion yen, while net profit dropped 14 percent to 262 billion yen.

Honda's group sales increased in volume terms. Sales of passenger cars, trucks and buses rose 6 percent from the previous year to 2.47 million units, while motorcycle sales increased 3.3 percent to 4.44 million.

Honda reported an operating loss of 14.5 billion yen in its European operation, but posted profits in other regions of the world.

Vice President Koichi Amemiya said Honda plans to begin exporting its vehicles made in Europe to Japan as soon as possible in an effort to create profit for its European businesses.

On an unconsolidated basis, Honda's sales decreased 1.4 percent to 2.9 trillion yen, down for the second consecutive year. Its pretax profit also fell 22.5 percent to 201 billion yen, the first profit decline in six years.

Honda predicts a consolidated pretax profit of 300 billion yen and group sales of 6.2 trillion yen for fiscal 2000, which ends March 2001. On an unconsolidated basis, it forecasts a pretax profit of 100 billion yen and sales of 2.9 trillion yen for fiscal 2000.

The company said that although Honda expects group sales of vehicles to increase for fiscal 2000, the yen's appreciation will continue to negatively affect its earnings.