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 ended Dec 31, 2018 (3 months period)	3rd quarter ended Dec. 31, 2019 (3 months period)	Difference	Fiscal nine months ended Dec. 31, 2018 (9 months period)	Fiscal nine months ended Dec. 31, 2019 (9 months period)	Difference
Honda Group Unit Sales^*1 (million units)	Motorcycles	5.013	5.019	+0.006	15.680	15.038	-0.642
	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 Unit Sales*² (million units)	Motorcycles	3.230	3.190	-0.040	10.378	9.732	-0.646
	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 Results (billion yen)	Sales revenue	3,973.6	3,747.5	-226.0	11,839.5	11,472.9	-366.5
	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 attributable to owners of the parent	168.2	116.4	-51.8	623.3	485.2	-138.0
Quarterly dividend per share (yen)		28	28	-	83	84	+1
Honda's Average Rate (yen)	USD=	113	109	Up by 4 yen	111	109	Up by 2 yen
Honda's 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 FY20 forecasts (Nov. 8, 2019)	Revised FY20 forecasts (Feb. 7, 2020)	Difference compared to FY19 results	Difference compared to previous forecasts
Honda Group Unit Sales^*1 (million units)	Motorcycles	20.238	19.900	19.900	-0.338	-
	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 Unit Sales*² (million units)	Motorcycles	13.215	12.850	12.880	-0.335	+0.030
	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 Results (billion yen)	Sales revenue	15,888.6	15,050.0	15,150.0	-738.6	+100.0
	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 attributable to owners of the parent	610.3	575.0	595.0	-15.3	+20.0
Annual dividend per share (yen)		111	112	112	+1	-
Honda's Average Rate (yen)	USD=	111	107	108	Up by 3 yen	Down by 1 yen
Honda's 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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