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.