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 2nd quarter
Difference
ended ended
Sep. 30, 2018 Sep. 30, 2019
(3 months period) (3 months period)
Honda Group
Motorcycles 5.315 5.098 -0.217
Unit Sales*1
(million units)
--- ---
Automobiles*3 1.246 1.241 -0.005
---
Life Creation*4 1.262 1.155 -0.107
---
Consolidated
Motorcycles 3.533 3.278 -0.255
Unit Sales*(2)
(million units)
--- ---
Automobiles*3 0.875 0.828 -0.047
---
Life Creation*4 1.262 1.155 -0.107
---
Financial
Sales revenue 3,841.7 3,729.1 -112.6
Results
(billion yen)
--- ---
Operating profit 214.4 220.1 5.6
---
Share of profit of 63.9 63.9 0.0
investments accounted for
using the equity method
---
Profit before income
taxes 283.0 289.6 6.5
---
Profit for the
period 210.7 196.5 -14.2
attributable to owners of the
parent
---
Quarterly dividend per share (yen) 28 28
---
Honda's
USD= 111 107
Up by 4 yen
Average
Rate (yen)
---
Consolidated Financial Results for the Fiscal First Half
Fiscal first Fiscal first
Difference
half ended half ended
Sep. 30, 2018 Sep. 30, 2019
(6 months period) (6 months period)
Honda Group
Motorcycles 10.667 10.019 -0.648
Unit Sales*1
(million units)
--- ---
Automobiles*3 2.551 2.562 +0.011
---
Life Creation*4 2.603 2.435 -0.168
---
Consolidated
Motorcycles 7.148 6.542 -0.606
Unit Sales*(2)
(million units)
--- ---
Automobiles*3 1.827 1.733 -0.094
---
Life Creation*4 2.603 2.435 -0.168
---
Financial
Sales revenue 7,865.8 7,725.3 -140.4
Results
(billion yen)
--- ---
Operating profit 513.8 472.6 -41.2
---
Share of profit of 118.2 108.1 -10.0
investments accounted for
using the equity method
---
Profit before income
taxes 641.3 579.4 -61.8
---
Profit for the
period 455.1 368.8 -86.2
attributable to owners of the
parent
---
Quarterly dividend per share (yen) 55 56 +1
---
Honda's
USD= 110 109
Up by 1 yen
Average
Rate (yen)
---
Forecasts for the Fiscal Year Ending March 31, 2020 (FY20)
FY19 results
Previous
Revised
Difference
Difference
compared to compared to
FY20
FY20 FY19 results previous
forecasts forecasts
forecasts
(Aug. 2, 2019)
(Nov. 8, 2019)
Honda Group
Motorcycles 20.238 20.350 19.900 -0.338 -0.450
Unit Sales*1
(million units)
--- ---
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
Motorcycles 13.215 13.255 12.850 -0.365 -0.405
Unit Sales*(2)
(million units)
--- ---
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
Sales revenue 15,888.6 15,650.0 15,050.0 -838.6 -600.0
Results/
Forecasts
(billion yen)
--- ---
Operating profit 726.3 770.0 690.0 -36.3 -80.0
---
Share of profit of 228.8 220.0 210.0 -18.8 -10.0
investments accounted for
using the equity method
---
Profit before income taxes 979.3 995.0 905.0 -74.3 -90.0
---
Profit for the period 610.3 645.0 575.0 -35.3 -70.0
attributable to owners of the
parent
---
Annual dividend per share (yen) 111 112 112 +1
---
Honda's
USD= 111 110 107
Up by 4 yen
Up by 3 yen
Average
1st half 110 yen
1st half 109 yen
2nd half 110 yen
2nd half 105 yen
Rate (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.
