TOKYO, Japan, July 29, 2014 - Honda Motor Co., Ltd. announced its consolidated financial results for the fiscal first quarter ended June 30, 2014.
Consolidated operating income for the fiscal first quarter (April 1, 2014 through June 30, 2014) amounted to 198.0 billion yen, an increase of 7.1% compared to the same period last year, due to profit-increasing factors including an increase in automobile sales in Japan and Asia resulting from the positive effect of new model introductions and full model changes as well as the positive effect of cost reduction efforts. This was despite profit-reducing factors such as an increase in selling, general and administrative (SG&A) expenses, an increase in depreciation expenses related to the start-up of new production plants and unfavorable currency effects. Consolidated income before income taxes for the fiscal first quarter amounted to 198.8 billion yen, an increase of 15.6% compared to the same period last year. Consolidated net income*1 for the fiscal first quarter amounted to 146.5 billion yen, an increase of 19.6% compared to the same period last year.
Reflecting the changes in the foreign exchange environment that occurred during the fiscal first quarter, Honda made an upward revision to its forecast for consolidated operating income for the current fiscal year (April 1, 2014 through March 31, 2015) from the previous 760.0 billion yen to 770.0 billion yen. In addition, the forecast for consolidated net income*1 for the current fiscal year was also revised upward from the previous 595.0 billion yen to 600.0 billion yen.
The quarterly dividend for the fiscal first quarter will be 22 yen per share, a 2 yen increase compared to the quarterly dividend for the same period last year. The total cash dividend to be paid for the fiscal year ending March 31, 2015 is expected to be 88 yen per share, an increase of 6 yen per share from the previous fiscal year.
Consolidated Financial Results for the Fiscal 1st Quarter
| 1st quarter ended June 30, 2013 (3-months period) |
1st quarter ended June 30, 2014 (3-months period) |
Difference | ||
| Honda Group Unit Sales*2 (million units) |
Motorcycles*4 | 4.054 | 4.137 | +0.083 |
| Automobiles*5 | 0.999 | 1.061 | +0.062 | |
| Power Products | 1.589 | 1.510 | -0.079 | |
| Consolidated Unit Sales*3 (million units) |
Motorcycles*4 | 2.371 | 2.457 | +0.086 |
| Automobiles*5 | 0.858 | 0.895 | +0.037 | |
| Power Products | 1.589 | 1.510 | -0.079 | |
| Financial Results (billion yen) |
Net sales and other operating revenue | 2,834.0 | 2,988.2 | +154.1 |
| Operating income | 184.9 | 198.0 | +13.0 | |
| Income before income taxes |
172.0 | 198.8 | +26.7 | |
| Equity in income of affiliates |
31.7 | 38.5 | +6.8 | |
| Net income*1 | 122.4 | 146.5 | +24.0 | |
| Quarterly dividend per share (yen) | 20 | 22 | +2 | |
| Honda’s Average Rate (yen) |
USD = | 99 | 102 | Down by 3 yen |
| EUR = | 129 | 140 | Down by 11 yen |
|
Forecasts for the Fiscal Year ending March 31, 2015 (FY15)
| FY14 results | Previously announced FY15 forecasts (2014/4/25) |
Revised FY15 forecasts (2014/7/29) |
Difference compared to FY14 results | Difference compared to previously announced forecasts | ||
| Honda Group Unit Sales*2 (million units) |
Motorcycles | 17.021 | 18.240 | 18.080 | +1.059 | -0.160 |
| Automobiles*5 | 4.323 | 4.830 | 4.830 | +0.507 | - | |
| Power Products | 6.036 | 6.345 | 6.335 | +0.299 | -0.010 | |
| Consolidated Unit Sales*3 (million units) |
Motorcycles | 10.343 | 11.030 | 10.915 | +0.572 | -0.115 |
| Automobiles*5 | 3.560 | 3.870 | 3.870 | +0.310 | - | |
| Power Products | 6.036 | 6.345 | 6.335 | +0.299 | -0.010 | |
| Financial Results/ Forecasts (billion yen) |
Net sales and other operating revenue |
11,842.4 | 12,750.0 | 12,800.0 | +957.5 | +50.0 |
| Operating income | 750.2 | 760.0 | 770.0 | +19.7 | +10.0 | |
| Income before income taxes | 728.9 | 745.0 | 755.0 | +26.0 | +10.0 | |
| Equity in income of affiliates |
132.4 | 155.0 | 155.0 | +22.5 | - | |
| Net income*1 | 574.1 | 595.0 | 600.0 | +25.8 | +5.0 | |
| Annual dividend per share (yen) | 82 | 88 | 88 | +6 | ‐ | |
| Honda's Average Rate (yen) |
USD = | 100 | 100 | 101 | Down by 1 yen | Down by 1 yen |
| EUR = | 136 | 135 | 136 | - | Down by 1 yen | |
- *1Net income attributable to Honda Motor Co., Ltd. based on U.S. generally accepted accounting principles.
- *2Honda Group Unit Sales is the total unit sales of completed products (motorcycles, ATVs, automobiles, power products) of Honda, its consolidated subsidiaries and its affiliates accounted for under the equity method.
- *3Consolidated Unit Sales is the total unit sales of completed products (motorcycles, ATVs, automobiles, power products) corresponding to consolidated net sales, which consists of unit sales of completed products of Honda and its consolidated subsidiaries.
- *4Honda Group Unit Sales and Consolidated Unit Sales of ATVs included in motorcycle business for the fiscal 1st quarter ended June 30, 2013 and 2014 are 21 thousand units and 22 thousand units, respectively.
- *5Certain 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 U.S. generally accepted accounting principles and are not included in consolidated net sales to the external customers in our automobile business. As a result, they are not included in Consolidated Unit Sales, but are included in Honda Group Unit Sales of our automobile business.