HMC Honda Motor Co Ltd

TOKYO, May 14, 2021 /PRNewswire/ --

• Despite some unfavorable factors such as a decrease in demand due to the impact of the COVID-19 pandemic and the impact of semiconductor supply shortages, consolidated operating profit for the fiscal year ended March 31, 2021 (FY21) amounted to 660.2 billion yen due primarily to control of selling, general and administrative (SG&A) expenses and cost reduction efforts based on a review of business activities, as well as an increase in profit due to a year-on-year difference in the amount of the provision for credit losses recorded for financial services business.
• Consolidated profit for the year attributable to owners of the parent experienced a year-on-year increase and amounted to 657.4 billion yen, due also to an increase in the share of profit of investments accounted for using the equity method.
• Despite the impact of an increase in raw material prices and a year-on-year difference in the amount of the provision for credit losses recorded, Honda plans to achieve a consolidated operating profit of 660 billion yen for the fiscal year ending March 31, 2022 (FY22), equivalent to that of FY21, by increasing unit sales and making progress in initiatives to solidify its existing businesses. Although production adjustments are currently being made at some Honda production operations globally due primarily to semiconductor supply shortages, Honda will minimize the impact of such production adjustments for the full-year results.
• Quarterly dividend for the fiscal fourth quarter will be 54 yen per share; total dividends to be paid for the fiscal year ended March 31, 2021(FY21) will be 110 yen per share, an increase by 28 yen per share compared to the previously announced forecast.
• The forecast for total dividends to be paid for the fiscal year ending March 31, 2022(FY22) is 110 yen per share, equivalent to that of FY21.
• With the aim to ensure stable and constant dividend distribution, the frequency of dividend payments will be changed to twice a year.

I.  Consolidated financial summary for the fiscal year ended March 31, 2021(FY21)

• Sales revenue: 13,170.5 billion yen (a year-on-year decrease of 11.8%)
  The year-on-year decrease was due to a decrease in sales revenue from all businesses due primarily to the impact of the COVID-19 pandemic.
• Operating profit: 660.2 billion yen (a year-on-year increase of 4.2%)
  The year-on-year increase was due primarily to control of SG&A expenses and cost reduction efforts. This was despite a decrease in profit related to changes in sales volume and model mix.
• Profit before income taxes: 914.0 billion yen (a year-on-year increase of 15.7%)
• Profit for the year attributable to owners of the parent: 657.4 billion yen (a year-on-year increase of 44.3%)

II.  Consolidated financial summary and business-by-business results for the fiscal fourth quarter (3 months) ended March 31, 2021(FY21)

• Sales revenue: 3,623.8 billion yen (a year-on-year increase of 4.8%)
  The increase was due to an increase in sales revenue from all businesses.
• Operating profit: 213.2 billion yen (a year-on-year increase of 218.8 billion yen) The increase was due primarily to control of SG&A expenses and an increase in profit related to changes in sales volume and model mix.

1)  Motorcycle business
Sales revenue: 529.1 billion yen (a year-on-year increase of 55.5 billion yen)
The increase was due to the recovery of sales mainly in Asia.   

Operating profit: 72.2 billion yen (a year-on-year increase of 8.7 billion yen).
The increase was due primarily to an increase in profit related to changes in sales volume and model mix and cost reduction efforts.

2)  Automobile business
Sales revenue: 2,418.4 billion yen (a year-on-year increase of 79.6 billion yen)
The increase was due primarily to an increase in sales in Asia. This was despite a decrease in sales in some regions including the U.S. and Europe.

Operating profit: 37.6 billion yen (a year-on-year increase of 113.3 billion yen)
The increase was due primarily to control of SG&A expenses and an increase in profit related to changes in sales volume and model mix.
Combined with operating profit from financial services business related to automobile sales, the estimated operating profit for automobile business is 140.4 billion yen.

3)  Financial Services business
Operating profit: 106.3 billion yen (a year-on-year increase of 83.4 billion yen)
The increase was due primarily to a year-on-year difference in the amount of the provision for credit losses recorded. 

4)  Life Creation (power products) and Other businesses
Operating loss: 3.0 billion yen (a year-on-year improvement of 13.3 billion yen)
Aircraft/aircraft engine business, which is included in "Other businesses," accounted to an operating loss of 7.8 billion yen.

III.  Forecasts for the Fiscal Year Ending March 31, 2022(FY22)

Despite the impact of an increase in raw material prices and a year-on-year difference in the amount of the provision for credit losses recorded, Honda plans to achieve a consolidated operating profit of 660 billion yen for the fiscal year ending March 31, 2022 (FY22), equivalent to that of FY21, by increasing unit sales and making progress in initiatives to solidify its existing businesses, which includes optimization of production capacity and increasing development efficiency.

Consolidated Financial Results for the Fiscal 4th Quarter ended March 31, 2021(FY21)

Consolidated Financial Results for the Fiscal Year Ended March 31, 2021(FY21)

Forecasts for the Fiscal Year Ending March 31, 2022 (FY22)

For Additional Information, please visit;
https://global.honda/investors/library/financialresult.html 

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SOURCE Honda Motor Co., Ltd.