29.Jan.2016 | ID: 71000

Consolidated Financial Summary for the Fiscal 3rd Quarter ended December 31, 2015

TOKYO, Japan, January 29, 2016 – Honda Motor Co., Ltd. announced its consolidated financial results for the fiscal third quarter ended December 31, 2015.

 

Consolidated operating profit for the fiscal third quarter (October 1, 2015 through December 31, 2015) amounted to 163.0 billion yen, a decrease of 22.3% compared to the same period last year, due to profit-reducing factors such as an increase in selling, general and administrative (SG&A) expenses that include quality-related expenses and unfavorable currency effects. This was despite profit-increasing factors such as an increase in profit from changes in sales volume and model mix as well as cost reduction efforts.

 

Consolidated operating profit for the fiscal nine months (April 1, 2015 through December 31, 2015) amounted to 567.2 billion yen, a decrease of 3.0% compared to the same period last year, due to profit-reducing factors such as an increase in selling, general and administrative (SG&A) expenses that include quality-related expenses. This was despite profit-increasing factors such as an increase in profit from changes in sales volume and model mix as well as the positive effect of cost-reduction efforts. Consolidated profit for the fiscal nine months attributable to owners of the parent amounted to 437.9 billion yen, an increase of 2.4% compared to the same period last year.

 

Despite favorable currency effects associated with depreciation of the Japanese yen, reflecting the latest forecast for consolidated unit sales, the previously announced forecast for consolidated sales revenue for the current fiscal year (April 1, 2015 through March 31, 2016) was revised downward by 50.0 billion yen to 14.55 trillion yen. Reflecting the positive effect of cost-reduction efforts, the forecast for consolidated operating profit for the current fiscal year will remain unchanged from the previous 685.0 billion yen. This is despite a decline in consolidated unit sales, an increase in quality-related expenses and unfavorable currency effects reflecting recent trends with the currencies of emerging countries. The forecasts for consolidated profit before income taxes and profit for the current fiscal year attributable to owners of the parent will remain unchanged from the forecasts announced previously.

 

The quarterly dividend for the fiscal third quarter will be 22 yen per share, and total cash dividends to be paid for the fiscal year ending March 31, 2016 are expected to be 88 yen per share.

 

All consolidated financial results for FY15, and results and forecasts for FY16 shown in this document are based on International Financial Reporting Standards (IFRS).

 

Consolidated Financial Results for the Fiscal 3rd Quarter and the Fiscal Nine Months

 

 

3rd quarter ended

Dec. 31, 2014

(3 months period)

3rd quarter

ended

Dec. 31, 2015

(3 months period)

Difference

Fiscal 9 months ended

Dec. 31, 2014

(9 months period)

Fiscal 9 months

ended

Dec. 31, 2015

(9 months period)

Difference

Honda Group
Unit Sales*1
(million units)

Motorcycles

4.585

4.407

-0.178

13.285

12.882

-0.403

Automobiles*3

1.174

1.228

+0.054

3.298

3.514

+0.216

Power Products

1.138

1.177

+0.039

3.961

4.010

+0.049

Consolidated

Unit Sales*2

(million units)

Motorcycles

2.751

2.654

-0.097

7.948

7.939

-0.009

Automobiles*3

0.872

0.879

+0.007

2.632

2.656

+0.024

Power Products

1.138

1.177

+0.039

3.961

4.010

+0.049

Financial
Results
(billion yen)

Sales revenue

3,497.9

3617.2

+119.3

9,836.5

10,943.2

+1,106.6

Operating profit

210.0

163.0

-46.9

584.5

567.2

-17.2

Share of profit of investments accounted for using the equity method

36.7

45.0

+8.3

78.1

117.6

+39.4

Profit before income taxes

264.4

200.8

-63.5

698.5

694.1

-4.4

Profit for the period

attributable to owners of the

parent

152.3

124.1

-28.2

427.5

437.9

+10.4

Quarterly dividend per share (yen)

22

22

66

66

Honda’s
Average
Rate (yen)

USD=

115

122

Down by 7 yen

107

122

Down by 15 yen

 

Forecasts for the Fiscal Year ending March 31, 2016 (FY16)

 

 

FY15 results

Previously announced FY16 forecasts

(2015/11/04)

Newly announced FY16 forecasts

(2016/1/29)

Difference compared to FY15 results

Difference compared to previously announced forecasts

Honda Group
Unit Sales*1
(million units)

Motorcycles

17.592

17.515

17.190

-0.402

-0.325

Automobiles*3

4.367

4.730

4.735

+0.368

+0.005

Power Products

5.983

5.945

5.925

-0.058

-0.020

Consolidated

Unit Sales*2

(million units)

Motorcycles

10.725

10.860

10.715

-0.010

-0.145

Automobiles*3

3.513

3.680

3.640

+0.127

-0.040

Power Products

5.983

5.945

5.925

-0.058

-0.020

Financial
Results/
Forecasts
(billion yen)

Sales revenue

13,328.0

14,600.0

14,550.0

+1,221.9

-50.0

Operating profit

670.6

685.0

685.0

+14.3

Share of profit of investments accounted for using the equity method

96.0

135.0

135.0

+38.9

Profit before income taxes

806.2

805.0

805.0

-1.2

Profit for the year

attributable to owners of the

parent

509.4

525.0

525.0

+15.5

Annual dividend per share (yen)

88

88

88

Honda’s
Average
Rate (yen)

USD=

110

118

120

Down by

10 yen

Down by

2 yen

 

 

*1 Honda Group Unit Sales is the total unit sales of the completed products (motorcycles, ATVs, 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, automobiles, power products) corresponding to consolidated sales revenue, which consists of unit sales of the 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 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.

 

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