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Consolidated Financial Summary for the Fiscal 2nd Quarter Ended September 30, 2019

TOKYO, Nov. 8, 2019 /PRNewswire/ -- Honda Motor Co., Ltd. (NYSE: HMC) announced its consolidated financial results for the fiscal second quarter ended September 30, 2019.

Consolidated sales revenue for the fiscal second quarter (July 1, 2019 through September 30, 2019) amounted to 3,729.1 billion yen, a decrease of 2.9% compared to the same period last year, due primarily to a decrease in sales revenue such as automobile and motorcycle businesses, as well as unfavorable foreign currency translation effects. This was despite an increase in sales revenue from financial services business.

Consolidated operating profit for the fiscal second quarter amounted to 220.1 billion yen, an increase of 2.6% compared to the same period last year, due primarily to a decrease in selling, general and administrative (SG&A) expenses that included quality-related expenses as well as cost reduction efforts. This was despite a decrease in profit related to changes in sales volume and model mix resulting from a decrease in motorcycle and automobile unit sales due to the slowdown of the Indian market.

Consolidated profit before income taxes for the fiscal second quarter amounted to 289.6 billion yen, an increase of 2.3% compared to the same period last year. Consolidated profit for the fiscal second quarter attributable to owners of the parent amounted to 196.5 billion yen, a decrease of 6.7% compared to the same period last year, due primarily to an increase in income tax expenses.

Consolidated financial results for the fiscal first half (April 1, 2019 through September 30, 2019) were as follows: consolidated sales revenue amounted to 7,725.3 billion yen, consolidated operating profit amounted to 472.6 billion yen, consolidated profit before income taxes amounted to 579.4 billion yen and consolidated profit for the fiscal first half attributable to owners of the parent amounted to 368.8 billion yen.

The previously announced forecast for consolidated operating profit for the current fiscal year (April 1, 2019 through March 31, 2020) was revised downward by 80.0 billion yen to 690.0 billion yen, primarily to reflect unfavorable currency effects. Honda will continue to make steady progress in the improvement of profitability and strives to establish a business structure which generates profit equivalent to or more than that of the previous fiscal year.

The quarterly dividend for the fiscal second quarter will be 28 yen per share, and total dividends to be paid for the fiscal year ending March 31, 2020 are expected to be 112 yen per share (an increase of 1 yen per share compared to the previous fiscal year).

At the board of directors meeting held today, Honda resolved the following details regarding the acquisition of its own shares for the purpose of increasing its capital efficiency and implementing more flexible capital policies:

  • Total number of shares to be acquired: Up to 33 million shares
    (shares of common stock)
  • Total amount of shares to be acquired: Up to 100 billion yen
  • Period of acquisition: From November 11, 2019 through March 31, 2020

Consolidated Financial Results for the Fiscal 2nd Quarter



2nd quarter

 ended

Sep. 30, 2018

(3 months period)

2nd quarter

ended

Sep. 30, 2019

(3 months period)

Difference

Honda Group

Unit Sales*1

(million units)

Motorcycles

5.315

5.098

-0.217

Automobiles*3

1.246

1.241

-0.005

Life Creation*4

1.262

1.155

-0.107

Consolidated

Unit Sales*2

(million units)

Motorcycles

3.533

3.278

-0.255

Automobiles*3

0.875

0.828

-0.047

Life Creation*4

1.262

1.155

-0.107

Financial

Results

(billion yen)

Sales revenue

3,841.7

3,729.1

-112.6

Operating profit 

214.4

220.1

5.6

Share of profit of

investments accounted for

using the equity method

63.9

63.9

0.0

Profit before income taxes

283.0

289.6

6.5

Profit for the period

attributable to owners of the

parent

210.7

196.5

-14.2

Quarterly dividend per share (yen)

28

28

-

Honda's

Average

Rate (yen)

USD=

111

107

Up by 4 yen





 

Consolidated Financial Results for the Fiscal First Half



Fiscal first

 half ended

Sep. 30, 2018

(6 months period)

Fiscal first

 half ended

Sep. 30, 2019

(6 months period)

Difference

Honda Group

Unit Sales*1

(million units)

Motorcycles

10.667

10.019

-0.648

Automobiles*3

2.551

2.562

+0.011

Life Creation*4

2.603

2.435

-0.168

Consolidated

Unit Sales*2

(million units)

Motorcycles

7.148

6.542

-0.606

Automobiles*3

1.827

1.733

-0.094

Life Creation*4

2.603

2.435

-0.168

Financial

Results

(billion yen)

Sales revenue

7,865.8

7,725.3

-140.4

Operating profit 

513.8

472.6

-41.2

Share of profit of

investments accounted for

using the equity method

118.2

108.1

-10.0

Profit before income taxes

641.3

579.4

-61.8

Profit for the period

attributable to owners of the

parent

455.1

368.8

-86.2

Quarterly dividend per share (yen)

55

56

+1

Honda's

Average

Rate (yen)

USD=

110

109

Up by 1 yen





 

Forecasts for the Fiscal Year Ending March 31, 2020 (FY20)



FY19 results

Previous

 FY20
forecasts

(Aug. 2, 2019)

Revised

FY20

forecasts

(Nov. 8, 2019)

Difference
compared to
FY19 results

Difference
compared to
previous
forecasts

Honda Group

Unit Sales*1

(million units)

Motorcycles

20.238

20.350

19.900

-0.338

-0.450

Automobiles*3

5.323

5.110

4.975

-0.348

-0.135

Life Creation*4

6.301

6.390

6.270

-0.031

-0.120

Consolidated

Unit Sales*2

(million units)

Motorcycles

13.215

13.255

12.850

-0.365

-0.405

Automobiles*3

3.748

3.495

3.360

-0.388

-0.135

Life Creation*4

6.301

6.390

6.270

-0.031

-0.120

Financial

Results/

Forecasts

(billion yen)

Sales revenue

15,888.6

15,650.0

15,050.0

-838.6

-600.0

Operating profit 

726.3

770.0

690.0

-36.3

-80.0

Share of profit of
investments accounted for
using the equity method

228.8

220.0

210.0

-18.8

-10.0

Profit before income taxes

979.3

995.0

905.0

-74.3

-90.0

Profit for the period

attributable to owners of the

parent

610.3

645.0

575.0

-35.3

-70.0

Annual dividend per share (yen)

111

112

112

+1

-

Honda's

Average

Rate (yen)

USD=

111

110

 1st half 110 yen
2nd half 110 yen

107

 1st half 109 yen
2nd half 105 yen

Up by 4 yen

Up by 3 yen



*1 Honda Group Unit Sales is the total unit sales of the completed products (motorcycles, ATVs, Side-by-Sides, automobiles, power products) of Honda, its consolidated subsidiaries and its affiliates and joint ventures accounted for using the equity method.

*2 Consolidated Unit Sales is the total unit sales of the completed products (motorcycles, ATVs, Side-by-Sides, automobiles, power products) corresponding to consolidated sales revenue, which consists of unit sales of completed products of Honda and its consolidated subsidiaries.

*3 Certain sales of automobiles that are financed with residual value type auto loans by our Japanese finance subsidiaries and sold through our consolidated subsidiaries are accounted for as operating leases in conformity with IFRS and are not included in consolidated sales revenue to the external customers in our automobile business. Accordingly, they are not included in Consolidated Unit Sales, but are included in Honda Group Unit Sales of our automobile business.

*4 Power Products business was renamed as Life Creation business as of April 1, 2019

For Additional Information, please visit;
https://global.honda/investors/library/financialresult.html

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SOURCE Honda Motor Co., Ltd.