Consolidated Financial Summary for the Fiscal 3rd Quarter Ended December 31, 2019

February 7, 2020, Japan

News Release

Honda Motor Co., Ltd. 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

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

  • *1Honda 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.
  • *2Consolidated 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.
  • *3Certain 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.
  • *4Power Products business was renamed as Life Creation business as of April 1, 2019.