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
- 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 throughMarch 31, 2021 ) was revised upward by100.0 billion yen to520.0 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 to465.0 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 to82 yen per share; the quarterly dividend for the fiscal third quarter will be26 yen per share.
I. Consolidated financial summary for the fiscal nine months ended
-
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
-
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:
Although sales are recovering in many countries, sales revenue experienced a year-on-year decrease due primarily to decreased sales, mainly in
Operating profit:
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:
The increase was due primarily to an increase in sales in
Operating profit:
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
3)
Financial Services business
Operating profit:
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:
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
III.
Forecasts for the Fiscal Year Ending
- 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 to520.0 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 to465.0 billion yen , a year-on-year increase.
Consolidated Financial Results for the Fiscal 3rd Quarter
|
|
|
3rd quarter ended
(3 months period) |
3rd quarter ended
(3 months period) |
Difference |
|
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 |
|
|
Average Rate (yen) |
USD/JPY |
109 |
104 |
JPY appreciated |
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Consolidated Financial Results for the Fiscal Nine Months
|
|
|
Fiscal nine months |
Fiscal nine months |
Difference |
|
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 |
|
|
Average Rate (yen) |
USD/JPY |
109 |
106 |
JPY appreciated |
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Forecasts for the Fiscal Year Ending
|
|
|
FY20 results |
Previous
FY21 （2020/11/6） |
Revised
FY21 (2021/2/9) |
Difference compared to FY20 results |
Difference
compared |
|
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 |
|
|
Average Rate (yen) |
USD/JPY |
109 |
106 |
105 |
JPY to |
JPY to |
*1 Honda Group Unit Sales is the total unit sales of completed products (motorcycles, ATVs, Side-by-Sides, automobiles, power products) of
*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
*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;
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