Consolidated Financial Summary for the Fiscal 3rd Quarter Ended December 31, 2019
TOKYO, Feb. 7, 2020 /PRNewswire/ -- Honda Motor Co., Ltd. (HMC: NYSE) announced its consolidated financial results for the fiscal third quarter ended December 31, 2019.
Consolidated sales revenue for the fiscal third quarter (October 1, 2019 through December 31, 2019) amounted to 3,747.5 billion yen, a decrease of 5.7% compared to the same period last year, due primarily to a decrease in sales revenue from automobile business as well as negative foreign currency translation effects. This was despite an increase in sales revenue from financial services business and other factors.
Consolidated operating profit for the fiscal third quarter amounted to 166.6 billion yen, a decrease of 2.1% compared to the same period last year, due primarily to a decrease in profit related to changes in sales revenue and model mix as well as negative currency effects. This was despite a decrease in selling, general and administrative (SG&A) expenses as well as continuing cost reduction.
Consolidated profit before income taxes for the fiscal third quarter amounted to 206.7 billion yen, a decrease of 8.9% compared to the same period last year. Consolidated profit for the fiscal third quarter attributable to owners of the parent amounted to 116.4 billion yen, a decrease of 30.8% compared to the same period last year.
The previously announced forecast for consolidated operating profit for the current fiscal year (April 1, 2019 through March 31, 2020) was revised upward by 40.0 billion yen to 730.0 billion yen, a year-over-year increase, primarily to reflect an increase in unit sales in Japan, a decrease in SG&A expenses and foreign currency effects. Honda will continue to make steady progress in the improvement of profitability and strives to establish a business structure which generates profit more than that of the previous fiscal year.
The impact related to the spread of novel coronavirus infections is not reflected to the forecasts for the FY2020.
The quarterly dividend for the fiscal third 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).
Consolidated Financial Results for the Fiscal 3rd Quarter and the Fiscal Nine Months
3rd quarter
3rd quarter
Difference
Fiscal
Fiscal
Difference
ended
ended
nine months
nine months
Dec 31, 2018
Dec. 31, 2019
ended
ended
(3 months
(3 months
Dec. 31, 2018
Dec. 31, 2019
period) period)
(9 months
(9 months
period) period)
Honda Group
Motorcycles 5.013 5.019 +0.006 15.680 15.038 -0.642
Unit Sales*1
(million units)
--- ---
Automobiles*3 1.408 1.247 -0.161 3.959 3.809 -0.150
---
Life Creation*4 1.351 1.195 -0.156 3.954 3.630 -0.324
---
Consolidated
Motorcycles 3.230 3.190 -0.040 10.378 9.732 -0.646
Unit Sales*(2)
(million units)
--- ---
Automobiles*3 0.942 0.808 -0.134 2.769 2.541 -0.228
---
Life Creation*4 1.351 1.195 -0.156 3.954 3.630 -0.324
---
Financial
Sales revenue 3,973.6 3,747.5 -226.0 11,839.5 11,472.9 -366.5
Results
(billion yen)
--- ---
Operating profit 170.1 166.6 -3.4 684.0 639.2 -44.7
---
Share of profit of
investments accounted for
using the equity method 51.4 41.5 -9.8 169.6 149.7 -19.9
---
Profit before income taxes 226.9 206.7 -20.1 868.2 786.1 -82.0
---
Profit for the period 168.2 116.4 -51.8 623.3 485.2 -138.0
attributable to owners of the parent
---
Quarterly dividend per share (yen) 28 28 83 84 +1
---
Honda's
USD= 113 109
Up by 4 yen 111 109
Up by 2 yen
Average
Rate (yen)
---
Forecasts for the Fiscal Year Ending March 31, 2020 (FY20)
* The impact related to the spread of novel coronavirus infections is not reflected to the forecasts for the FY2020.
FY19 results
Previous Revised
Difference
Difference
FY20 forecasts compared to compared to
FY20 FY19 results previous forecasts
(Nov. 8, 2019)
forecasts
(Feb. 7, 2020)
Honda Group
Motorcycles 20.238 19.900 19.900 -0.338
Unit Sales*1
(million units)
--- ---
Automobiles*3 5.323 4.975 4.980 -0.343 +0.005
---
Life Creation*4 6.301 6.270 6.000 -0.301 -0.270
---
Consolidated
Motorcycles 13.215 12.850 12.880 -0.335 +0.030
Unit Sales*(2)
(million units)
--- ---
Automobiles*3 3.748 3.360 3.365 -0.383 +0.005
---
Life Creation*4 6.301 6.270 6.000 -0.301 -0.270
---
Financial
Sales revenue 15,888.6 15,050.0 15,150.0 -738.6 +100.0
Results
(billion yen)
--- ---
Operating profit 726.3 690.0 730.0 +3.6 +40.0
---
Share of profit of
investments
accounted for using
the equity method 228.8 210.0 210.0 -18.8 -
---
Profit before income
taxes 979.3 905.0 940.0 -39.3 +35.0
---
Profit for the
period 610.3 575.0 595.0 -15.3 +20.0
attributable to owners of the
parent
---
Annual dividend per share (yen) 111 112 112 +1
--- ---
Honda's
USD= 111 107 108
Up by 3 yen
Down by 1 yen
Average
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.
