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Revenue would have climbed 2 percent without the deal and foreign exchange fluctuations.
Foreign exchange fluctuations reduced sales by one percentage point.
The company noted, however, that stripping out the effects of foreign exchange fluctuations and one-time events but keeping price increases, its sales grew 5.5 percent.
The Persian Gulf crisis contributed to the poor performance, by crippling overseas travel, and foreign exchange fluctuations also hurt.
Making the vehicles in North America, rather than in Japan, Toyota reduces its exposure to foreign exchange fluctuations.
Foreign exchange and banking conditions - you will be exposed to foreign exchange fluctuations when selling overseas unless your customer agrees to pay in sterling, thus taking on the risk.
To offset the potential impact from foreign exchange fluctuations and better respond to changes in demand in the United States, Honda will spend $425 million to expand its factory in Lincoln, Ala., so assembly lines there can pump out as many as 150,000 extra vehicles a year starting in September 2002.