Company Announcements

Honda Motor Co., Ltd. (HMC:NYSE) announced its Consolidated Financial Summary for the Fiscal 3rd Quarter Ended December 31, 2020 and Forecasts for the Fiscal Year Ending March 31, 2021

TOKYO, Feb. 9, 2021 /PRNewswire/ --

  • Despite a decrease in demand due to the impact of the COVID-19 pandemic, consolidated operating profit for the fiscal nine months amounted to 447.0 billion yen due primarily to control of selling, general and administrative (SG&A) expenses and cost reduction efforts resulting from a fundamental review of business activities conducted throughout the entire company.
  • The previously announced forecast for consolidated operating profit for the current fiscal year (April 1, 2020 through March 31, 2021) was revised upward by 100.0 billion yen to 520.0 billion yen. This was despite the impact of both the COVID-19 pandemic and the shortage of semiconductor supply.
  • The previously announced forecast for profit for the fiscal year attributable to owners of the parent was revised upward by 75.0 billion yen to 465.0 billion yen, a year-on-year increase.
  • The previously announced forecast for total dividends to be paid for the fiscal year was revised upward by 14 yen per share to 82 yen per share; the quarterly dividend for the fiscal third quarter will be 26 yen per share.

I.  Consolidated financial summary for the fiscal nine months ended December 31, 2020

  • Sales revenue: 9,546.7 billion yen 
    The year-on-year decrease was due primarily to a decrease in sales revenue from all businesses as a result of the impact of the COVID-19 pandemic.
  • Operating profit: 447.0 billion yen 
    The improvement 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: 658.7 billion yen  
  • Profit for the period attributable to owners of the parent: 444.1 billion yen 

II.  Consolidated financial summary and business-by-business results for the fiscal third quarter (3 months) ended December 31, 2020

  • Sales revenue: 3,771.5 billion yen (a year-on-year increase of 0.6%)
    The increase was due primarily to an increase in sales revenue from automobile business.
  • Operating profit: 277.7 billion yen(a year-on-year increase of 66.7%)
    The increase was due primarily to increased efficiency of R&D expenditures and cost reduction efforts. This was despite unfavorable currency effects.

1)  Motorcycle business
Sales revenue: 490.8 billion yen (a year-on-year decrease of 39.3 billion yen)
Although sales are recovering in many countries, sales revenue experienced a year-on-year decrease due primarily to decreased sales, mainly in Asia.

Operating profit: 72.7 billion yen (a year-on-year decrease of 1.8 billion yen).
The improvement was due primarily to cost reduction efforts and control of SG&A expenses. This was despite a decrease in profit related to changes in sales volume and model mix.

2)  Automobile business
Sales revenue: 2,638.1 billion yen(a year-on-year increase of 63.2 billion yen)
The increase was due primarily to an increase in sales in Japan and the U.S. offsetting a decrease in sales in Europe and Asia.

Operating profit: 123.1 billion yen (a year-on-year increase of 89.4 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. This was despite an increase in SG&A expenses. The operating profit margin also increased.
Combined with operating profit from financial services business related to automobile sales, the estimated operating profit for automobile business is 205.4 billion yen.

3)  Financial Services business
Operating profit: 85.7 billion yen (a year-on-year increase of 21.1 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:3.8 billion yen(a year-on-year improvement of 2.3 billion yen)
The loss was due primarily to a decrease in profit related to changes in sales volume and model mix. Aircraft and aircraft engine business, which is included in other businesses, accounted to an operating loss of 9.1 billion yen.

III.  Forecasts for the Fiscal Year Ending March 31, 2021 (FY21)

  • The future outlook of the market remains uncertain due to the impact of the COVID-19 pandemic.
  • Despite the impact of the shortage of semiconductor supply, the previously announced forecast for consolidated operating profit for the current fiscal year was revised upward by 100.0 billion yen to 520.0 billion yen.
  • The previously announced forecast for profit for the fiscal year attributable to owners of the parent was revised upward by 75.0 billion yen to 465.0 billion yen, a year-on-year increase.

Consolidated Financial Results for the Fiscal 3rd Quarter



3rd quarter

 ended

Dec. 31, 2019

 (3 months period)

3rd quarter

 ended

Dec. 31, 2020

 (3 months period)

Difference

Honda Group

Unit Sales*1

(million units)

Motorcycles

5.019

4.269

- 0.750

Automobiles*3

1.247

1.380

+0.133

Life Creation

1.195

1.402

+0.207

Consolidated

Unit Sales*2

(million units)

Motorcycles

3.190

3.019

- 0.171

Automobiles*3

0.808

0.809

+0.001

Life Creation

1.195

1.402

+0.207

Financial

Results

(billion yen)

Sales revenue

3,747.5

3,771.5

+23.9

Operating profit 

166.6

277.7

+111.0

Share of profit of investments accounted for using the equity method

41.5

102.2

+60.7

Profit before income taxes

206.7

386.4

+179.6

Profit for the period

attributable to owners of the

parent

116.4

284.0

+167.6

Quarterly dividend per share (yen)

28

26

-2

Honda's

Average

Rate (yen)

USD/JPY

109

104

JPY appreciated
against the USD
by 5 yen/dollar 




Consolidated Financial Results for the Fiscal Nine Months



Fiscal nine months
ended Dec. 31,
2019
(9 months period)

Fiscal nine months
ended Dec. 31,
2020
(9 months period)

Difference

Honda Group

Unit Sales*1

(million units)

Motorcycles

15.038

10.591

- 4.447

Automobiles*3

3.809

3.425

- 0.384

Life Creation

3.630

3.855

+0.225

Consolidated

Unit Sales*2

(million units)

Motorcycles

9.732

7.263

- 2.469

Automobiles*3

2.541

1.899

- 0.642

Life Creation

3.630

3.855

+0.225

Financial

Results

(billion yen)

Sales revenue

11,472.9

9,546.7

- 1,926.2

Operating profit 

639.2

447.0

-192.2

Share of profit of investments accounted for using the equity method

149.7

204.5

+54.8

Profit before income taxes

786.1

658.7

- 127.4

Profit for the period

attributable to owners of the

parent

485.2

444.1

- 41.1

Dividend per share (yen)

84

56

-28

Honda's

Average

Rate (yen)

USD/JPY

109

106

JPY appreciated
against the USD
by 3 yen/dollar 




Forecasts for the Fiscal Year Ending March 31, 2021 (FY21)



FY20

results

Previous

FY21
forecasts

(2020/11/6)

Revised

FY21
forecasts

(2021/2/9)

Difference

compared to

FY20 results

Difference

 compared
to previous
forecasts

Honda Group

Unit Sales*1

(million units)

Motorcycles

19.340

14.800

15.000

-4.340

+0.200

Automobiles*3

4.790

4.600

4.500

-0.290

-0.100

Life Creation

5.701

5.500

5.500

-0.201

-

Consolidated

Unit Sales*2

(million units)

Motorcycles

12.426

10.145

10.185

-2.241

+0.040

Automobiles*3

3.318

2.715

2.615

-0.703

-0.100

Life Creation

5.701

5.500

5.500

-0.201

-

Financial

Results/

Forecasts

(billion yen)

Sales revenue

14,931.0

13,050.0

12,950.0

-1,981.0

-100.0

Operating profit 

633.6

420.0

520.0

-113.6

+100.0

Share of profit of investments

accounted for using the equity method

164.2

225.0

235.0

+70.7

+10.0

Profit before income taxes

789.9

660.0

745.0

-44.9

+85.0

Profit for the period

attributable to owners of the

parent

455.7

390.0

465.0

+9.2

+75.0

Annual dividend per share (yen)

112

68

82

-30

+14

Honda's

Average

Rate (yen)

USD/JPY

109

106

105

JPY to
appreciate
against the
USD by 4
yen/dollar

JPY to
appreciate
against the
USD by 1
yen/dollar

*1 Honda Group Unit Sales is the total unit sales of 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 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.

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

 

 

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SOURCE Honda Motor Co., Ltd.