TOKYO, Aug. 2, 2019 /PRNewswire/ -- Honda Motor Co.,
Ltd. (HMC;NYSE) announced its consolidated financial results for
the fiscal first quarter ended June 30,
2019.
Consolidated sales revenue for the fiscal first quarter
(April 1, 2019 through June 30, 2019) amounted to 3,996.2 billion
yen, a decrease of 0.7% 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
effects. This was despite an increase in sales revenue from
financial services business.
Consolidated operating profit for the fiscal first quarter
amounted to 252.4 billion yen, a
decrease of 15.7% compared to the same period last year, due
primarily to an increase in selling, general and administrative
(SG&A) expenses, a decrease in profit related to changes in
sales volume and model mix resulting from a decrease in automobile
unit sales in U.S. and a decrease in motorcycle and automobile unit
sales due to the slowdown of the Indian market, as well as
unfavorable foreign currency effects. This was despite cost
reduction efforts.
Consolidated profit before income taxes for the fiscal first
quarter amounted to 289.8 billion
yen, a decrease of 19.1% compared to the same period last
year. Consolidated profit for the fiscal first quarter attributable
to owners of the parent amounted to 172.3
billion yen, a decrease of 29.5% compared to the same period
last year, due to a change in the amount of profit before income
taxes and an increase in income tax expenses based on regulations
issued in relation to the Tax Cuts and Jobs Act in the U.S.
The previously announced forecast for consolidated sales revenue
for the current fiscal year (April 1,
2019 through March 31, 2020)
was revised downward by 50.0 billion
yen to 15,650.0 billion yen,
mainly to reflect the downward revision of the forecast for
automobile unit sales in India.
Despite the downward revision of the forecast for automobile unit
sales in light of uncertainties in emerging markets, the forecast
for operating profit remains the same, 770.0
billion yen, due to an increase in the forecast of
motorcycle unit sales in some countries such as Vietnam and the further improvement in the
business structure. The forecast for profit for the current fiscal
year attributable to owners of the parent was revised downward by
20.0 billion yen, to 645.0 billion yen, due to an increase in income
tax expenses recorded during the fiscal first quarter.
The quarterly dividend for the fiscal first quarter will be
28 yen per share (an increase of
1 yen per share compared to the same
period last year), 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 1st
Quarter
|
|
1st
quarter
ended
June 30,
2018
(3 months
period)
|
1st
quarter
ended
June 30,
2019
(3 months
period)
|
Difference
|
Honda Group
Unit Sales*1
(million units)
|
Motorcycles
|
5.352
|
4.921
|
-0.431
|
Automobiles*3
|
1.305
|
1.321
|
+0.016
|
Life
Creation*4
|
1.341
|
1.280
|
-0.061
|
Consolidated
Unit
Sales*2
(million
units)
|
Motorcycles
|
3.615
|
3.264
|
-0.351
|
Automobiles*3
|
0.952
|
0.905
|
-0.047
|
Life
Creation*4
|
1.341
|
1.280
|
-0.061
|
Financial
Results
(billion yen)
|
Sales
revenue
|
4,024.1
|
3,996.2
|
-27.8
|
Operating
profit
|
299.3
|
252.4
|
-46.9
|
Share of profit
of
investments accounted for
using the equity method
|
54.3
|
44.2
|
-10.0
|
Profit before income
taxes
|
358.2
|
289.8
|
-68.4
|
Profit for the
period
attributable to
owners of the
parent
|
244.3
|
172.3
|
-72.0
|
Quarterly dividend per
share (yen)
|
27
|
28
|
+1
|
Honda's
Average
Rate (yen)
|
USD=
|
109
|
110
|
Down by 1
yen
|
|
|
|
|
Forecasts for the Fiscal Year Ending March 31, 2020 (FY20)
|
|
FY19
results
|
Previously
announced
FY20 forecasts
(May. 8,
2019)
|
Newly
announced
FY20
forecasts
(Aug. 2,
2019)
|
Difference
compared to
FY19 results
|
Difference
compared to
previously
announced
forecasts
|
Honda Group
Unit Sales*1
(million units)
|
Motorcycle
|
20.238
|
20.250
|
20.350
|
+0.112
|
+0.100
|
Automobile*3
|
5.323
|
5.160
|
5.110
|
-0.213
|
-0.050
|
Life
Creation*4
|
6.301
|
6.390
|
6.390
|
+0.089
|
-
|
Consolidated
Unit
Sales*2
(million
units)
|
Motorcycle
|
13.215
|
13.100
|
13.255
|
+0.040
|
+0.155
|
Automobile*3
|
3.748
|
3.545
|
3.495
|
-0.253
|
-0.050
|
Life
Creation*4
|
6.301
|
6.390
|
6.390
|
+0.089
|
-
|
Financial
Results/
Forecasts
(billion yen)
|
Sales
revenue
|
15,888.6
|
15,700.0
|
15,650.0
|
-238.6
|
-50.0
|
Operating
profit
|
726.3
|
770.0
|
770.0
|
+43.6
|
-
|
Share of profit
of
investments accounted for
using the equity method
|
228.8
|
220.0
|
220.0
|
-8.8
|
-
|
Profit before income
taxes
|
979.3
|
995.0
|
995.0
|
+15.6
|
-
|
Profit for the
year
attributable to
owners of the
parent
|
610.3
|
665.0
|
645.0
|
+34.6
|
-20.0
|
Annual dividend per
share (yen)
|
111
|
112
|
112
|
+1
|
-
|
Honda's
Average
Rate (yen)
|
USD=
|
111
|
110
|
110
|
Up
by 1 yen
|
-
|
|
|
|
1st half 110
yen 2nd half 110 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.