Consolidated Financial Summary for the Fiscal 1st Quarter Ended June 30, 2019

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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.

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  • 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 to3,996.2 billion yen, a decrease of 0.7% compared to the same period last year, due primarily to a decreasein 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 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 Financial Summary for the Fiscal 1st Quarter Ended June 30, 2019

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.