Honda Motor Co., Ltd. announced its consolidated financial results for the fiscal year and the fiscal fourth quarter ended March 31, 2018.
Consolidated sales revenue for the fiscal year (April 1, 2017 through March 31, 2018) amounted to 15,361.1 billion yen, an increase of 9.7% compared to the previous fiscal year, due primarily to an increase in sales revenue from all businesses and favorable foreign currency translation effects. Consolidated operating profit for the fiscal year amounted to 833.5 billion yen, a decrease of 0.9% compared to the previous fiscal year, due primarily to an increase in selling, general and administrative (SG&A) expenses, the settlement of multidistrict class action litigation and the reverse effect from the impact of pension plan amendments in the previous fiscal year. This was despite strong motorcycle sales mainly in Asian countries, such as India and Vietnam, and the positive effect of cost reduction efforts. Consolidated profit before income taxes for the fiscal year amounted to 1,114.9 billion yen, an increase of 10.7% compared to the same period last year, due primarily to an increase in the share of profit of investments accounted for using the equity method. Consolidated profit for the fiscal year attributable to owners of the parent amounted to 1,059.3 billion yen, an increase of 71.8% compared to the previous fiscal year, due primarily to the impact of a reduction of corporate tax rates in the U.S.*1
Consolidated sales revenue for the fiscal fourth quarter (January 1, 2018 through March 31, 2018) amounted to 3,914.7 billion yen, an increase of 4.0% compared to the same period last year, due primarily to an increase in sales revenue from all businesses. This was despite decrease in sales revenue factors such as unfavorable foreign currency translation effects. Consolidated operating profit for the fiscal fourth quarter amounted to 126.8 billion yen, a decrease of 8.2% compared to the same period last year, due primarily to an increase in SG&A expenses and unfavorable foreign currency effects. This was despite the positive effect of cost reduction efforts. Consolidated profit before income taxes for the fiscal fourth quarter amounted to 190.4 billion yen, an increase of 1.8% compared to the same period last year, due primarily to an increase in the share of profit of investments accounted for using the equity method. Consolidated profit for the fiscal fourth quarter attributable to owners of the parent amounted to 107.7 billion yen, an increase of 12.3% compared to the same period last year.
The quarterly dividend for the fiscal fourth quarter will be 27 yen per share, an increase of 3 yen per share compared to the same period last year. The total dividends to be paid for the fiscal year ended March 31, 2018 will be 100 yen per share, an increase of 8 yen per share compared to the previous fiscal year.
For the purpose of improving efficiency of its capital structure and implementing a flexible capital strategy, Honda resolved the following details regarding the acquisition of its own shares at the board of directors meeting held today:
| ・Class of shares and the total number of shares to be acquired: |
Shares of common stock, 18 million shares (maximum) |
| ・Total amount of acquisition: |
Up to 70 billion yen |
| ・Period of acquisition: | From May 7, 2018 through December 31, 2018 |
Consolidated Financial Results for the Fiscal Year Ended March 31, 2018 (FY18)
| FY17 results |
Previously announced FY18 forecasts (Feb. 2, 2018) |
FY18 results |
Difference compared to FY17 results | Difference compared to previously announced forecasts | ||
| Honda Group Unit Sales*2 (million units) |
Motorcycles | 17.661 | 19.410 | 19.554 | +1.893 | +0.144 |
| Automobiles*4 | 5.028 | 5.225 | 5.199 | +0.171 | -0.026 | |
| Power Products | 6.121 | 6.165 | 6.262 | +0.141 | +0.097 | |
| Consolidated Unit Sales*3 (million units) |
Motorcycles | 11.237 | 12.820 | 12.954 | +1.717 | +0.134 |
| Automobiles*4 | 3.683 | 3.695 | 3.689 | +0.006 | -0.006 | |
| Power Products | 6.121 | 6.165 | 6.262 | +0.141 | +0.097 | |
| Financial Results (billion yen) |
Sales revenue | 13,999.2 | 15,200.0 | 15,361.1 | +1,361.9 | +161.1 |
| Operating profit | 840.7 | 775.0 | 833.5 | -7.1 | +58.5 | |
| Share of profit of investments accounted for using the equity method | 164.7 | 240.0 | 247.6 | +82.8 | +7.6 | |
| Profit before income taxes | 1,006.9 | 1,045.0 | 1,114.9 | +107.9 | +69.9 | |
| Profit for the year attributable to owners of the parent |
616.5 | 1,000.0 | 1,059.3 | +442.7 | +59.3 | |
| Annual dividend per share (yen) | 92 | 98 | 100 | +8 | +2 | |
| Honda’s Average Rate (yen) |
USD= | 108 | 110 | 111 | Down by 3 yen |
Down by 1 yen |
Consolidated Financial Results for the Fiscal 4th Quarter
| 4th quarter ended Mar. 31, 2017 (3 months period) |
4th quarter ended Mar. 31, 2018 (3 months period) |
Difference | ||
| Honda Group Unit Sales*2 (million units) |
Motorcycles | 4.248 | 4.747 | +0.499 |
| Automobiles*4 | 1.285 | 1.296 | +0.011 | |
| Power Products | 2.218 | 2.477 | +0.259 | |
| Consolidated Unit Sales*3 (million units) |
Motorcycles | 2.689 | 3.167 | +0.478 |
| Automobiles*4 | 0.960 | 0.950 | -0.010 | |
| Power Products | 2.218 | 2.477 | +0.259 | |
| Financial Results (billion yen) |
Sales revenue | 3,763.4 | 3,914.7 | +151.2 |
| Operating profit | 138.1 | 126.8 | -11.2 | |
| Share of profit of investments accounted for using the equity method | 48.5 | 57.9 | +9.3 | |
| Profit before income taxes | 186.9 | 190.4 | +3.4 | |
| Profit for the period attributable to owners of the parent | 95.9 | 107.7 | +11.7 | |
| Quarterly dividend per share (yen) | 24 | 27 | +3 | |
| Honda’s Average Rate (yen) |
USD= | 114 | 108 | Up by 6 yen |
Forecasts for the Fiscal Year Ending March 31, 2019 (FY19)
| FY18 results |
FY19 forecasts (Apr. 27, 2018) |
Difference | ||
| Honda Group Unit Sales*2 (million units) |
Motorcycles | 19.554 | 20.545 | +0.991 |
| Automobiles*4 | 5.199 | 5.375 | +0.176 | |
| Power Products | 6.262 | 6.290 | +0.028 | |
| Consolidated Unit Sales*3 (million units) |
Motorcycles | 12.954 | 13.560 | +0.606 |
| Automobiles*4 | 3.689 | 3.835 | +0.146 | |
| Power Products | 6.262 | 6.290 | +0.028 | |
| Financial Results/ Forecasts (billion yen) |
Sales revenue | 15,361.1 | 15,600.0 | +238.8 |
| Operating profit | 833.5 | 700.0 | -133.5 | |
| Share of profit of investments accounted for using the equity method | 247.6 | 215.0 | -32.6 | |
| Profit before income taxes | 1,114.9 | 920.0 | -194.9 | |
| Profit for the year attributable to owners of the parent |
1,059.3 | 570.0 | -489.3 | |
| Annual dividend per share (yen) | 100 | 108 | +8 | |
| Honda’s Average Rate (yen) |
USD= | 111 | 105 | Up by 6 yen |
- *1Impact of the re-measurement of deferred tax assets/liabilities of consolidated subsidiaries based on the reduction of corporate tax rates in the U.S.
- *2Honda 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.
- *3Consolidated 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.
- *4Certain 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.