Consolidated Financial Summary for the Fiscal 3rd Quarter Ended December 31, 2018
TOKYO, Feb. 1, 2019 /PRNewswire/ -- Honda Motor Co., Ltd. (HMC;NYSE) announced its consolidated financial results for the fiscal third quarter ended December 31, 2018.
Consolidated sales revenue for the fiscal third quarter (October 1, 2018 through December 31, 2018) amounted to 3,973.6 billion yen, remaining at approximately the same level compared to the same period last year, due primarily to an increase in motorcycle unit sales in certain countries such as Vietnam and an increase in sales revenue from financial services business. This was despite decrease in sales revenue factors such as unfavorable foreign currency translation effects. Consolidated operating profit for the fiscal third quarter amounted to 170.1 billion yen, a decrease of 40.2% compared to the same period last year, due primarily to a decrease in profit related to changes in sales volume and model mix, an increase in selling, general and administrative (SG&A) expenses and unfavorable foreign currency effects. This was despite profit-increasing factors such as cost reduction efforts. Consolidated profit for the fiscal third quarter attributable to owners of the parent amounted to 168.2 billion yen, a decrease of 402.0 billion yen (70.5%) compared to the same period last year, due primarily to the reverse effect from the impact of a reduction of corporate tax rates in the U.S. (346.1 billion yen)(*1) recorded in the same period last year.
Consolidated sales revenue for the fiscal nine months (April 1, 2018 through December 31, 2018) amounted to 11,839.5 billion yen, an increase of 3.4% compared to the same period last year, due primarily to an increase in sales revenue from all businesses. Consolidated operating profit for the fiscal nine months amounted to 684.0 billion yen, a decrease of 3.2% compared to the same period last year, due primarily to an increase in SG&A expenses and unfavorable foreign currency effects. This was despite cost reduction efforts and the loss related to the settlement of multidistrict class action litigation recorded in the same period last year. Consolidated profit before income taxes for the fiscal nine months amounted to 868.2 billion yen, a decrease of 6.1% compared to the same period last year. Consolidated profit for the fiscal nine months attributable to owners of the parent amounted to 623.3 billion yen, a decrease of 328.2 billion yen (34.5%) compared to the same period last year, due primarily to the reverse effect from the impact of a reduction of corporate tax rates in the U.S. (346.1 billion yen)(*1) recorded in the same period last year.
The following revisions were made to the previously announced consolidated financial forecasts for the current fiscal year (April 1, 2018 through March 31, 2019). The forecast for consolidated sales revenue was revised upward by 50.0 billion yen to 15.85 trillion yen, and the forecast for profit for the current fiscal year attributable to owners of the parent was revised upward by 20.0 billion yen to 695.0 billion yen. The forecast for operating profit remains unchanged from the previous forecast of 790.0 billion yen.
The quarterly dividend for the fiscal third quarter will be 28 yen per share (an increase of 3 yen per share compared to the same period last year), and total dividends to be paid for the fiscal year ending March 31, 2019 are expected to be 111 yen per share (an increase of 11 yen per share compared to the previous fiscal year).
Consolidated Financial Results for the Fiscal 3rd Quarter and the Fiscal Nine Months
3rd quarter
3rd quarter
Difference
Fiscal
Fiscal
Difference
ended
ended
9 months
9 months
Dec. 31, 2017
Dec. 31, 2018
ended
ended
(3 months period)
(3 months period)
Dec. 31, 2017
Dec. 31, 2018
(9 months period)
(9 months period)
Honda Group
Motorcycles 4.870 5.013 +0.143 14.807 15.680 +0.873
Unit Sales*2
(million units)
--- ---
Automobiles*4 1.344 1.408 +0.064 3.903 3.959 +0.056
---
Power Products 1.196 1.351 +0.155 3.785 3.954 +0.169
---
Consolidated
Motorcycles 3.096 3.230 +0.134 9.787 10.378 +0.591
Unit Sales*(3)
(million units)
--- ---
Automobiles*4 0.932 0.942 +0.010 2.739 2.769 +0.030
---
Power Products 1.196 1.351 +0.155 3.785 3.954 +0.169
---
Financial
Sales revenue 3,957.1 3,973.6 +16.5 11,446.4 11,839.5 +393.0
Results
(billion yen)
--- ---
Operating profit 284.5 170.1 -114.4 706.7 684.0 -22.7
---
Share of profit of 54.5 51.4 -3.1 189.7 169.6 -20.0
investments
accounted for using
the equity method
---
Profit before income 346.8 226.9 -119.9 924.5 868.2 -56.2
taxes
---
Profit for the period 570.2 168.2 -402.0 951.5 623.3 -328.2
attributable to owners
of the parent
---
Quarterly dividend per share (yen) 25 28 +3 73 83 +10
--- ---
Honda's
USD= 113 113 112 111
Up by
Average
1 yen
Rate (yen)
--- ---
Forecasts for the Fiscal Year Ending March 31, 2019 (FY19)
FY18 results
Previously
Newly
Difference
Difference
announced announced compared to compared to
FY19 forecasts FY18 results previously
FY19 forecasts announced
(Feb. 1, 2019) forecasts
(Oct. 30, 2018)
Honda Group
Motorcycles 19.554 20.850 20.400 +0.846 -0.450
Unit Sales*2
(million units)
--- ---
Automobiles*4 5.199 5.285 5.285 +0.086 -
---
Power Products 6.262 6.345 6.240 -0.022 -0.105
---
Consolidated
Motorcycles 12.954 13.860 13.395 +0.441 -0.465
Unit Sales*3
(million units)
--- ---
Automobiles*4 3.689 3.745 3.745 +0.056 -
---
Power Products 6.262 6.345 6.240 -0.022 -0.105
---
Financial
Sales revenue 15,361.1 15,800.0 15,850.0 +488.8 +50.0
Results/
Forecasts
(billion yen)
--- ---
Operating profit 833.5 790.0 790.0 -43.5 -
---
Share of profit of 247.6 215.0 215.0 -32.6 -
investments accounted for
using the equity method
---
Profit before income taxes 1,114.9 1,010.0 1,010.0 -104.9 -
---
Profit for the year 1,059.3 675.0 695.0 -364.3 +20.0
attributable to owners of the
parent
---
Annual dividend per share (yen) 100 111 111 +11
--- ---
Honda's
USD= 111 110 111
Down by
Average
1 yen
Rate (yen)
---
3Q : 110 yen
1Q - 3Q : 111 yen
4Q : 110 yen
4Q : 110 yen
*1 Impact of the re-measurement of deferred tax asset/liability of consolidated subsidiaries based on the reduction of corporate tax rates in the U.S.
*2 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.
*3 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.
*4 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.
For Additional Information, please visit;
https://global.honda/investors/library/financialresult.html
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SOURCE Honda Motor Co., Ltd.
