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
Honda reported a consolidated operating profit of 447.0 billion yen for the nine months ending December 31, 2020, despite COVID-19 impacts and semiconductor shortages. The forecast for consolidated operating profit for FY21 has been revised upward by 100.0 billion yen to 520.0 billion yen. Total dividends per share were also increased by 14 yen to 82 yen. Sales revenue for the nine months was 9,546.7 billion yen, reflecting a decrease due to pandemic effects, while sales revenue for the third quarter increased by 0.6% year-on-year, driven primarily by the automobile sector.
- Revised forecast for consolidated operating profit increased by 100.0 billion yen to 520.0 billion yen.
- Profit for the fiscal year attributable to owners of the parent revised upward by 75.0 billion yen to 465.0 billion yen.
- Quarterly dividend increased by 14 yen per share to 82 yen per share.
- Operating profit for the third quarter increased by 66.7% year-on-year to 277.7 billion yen due to cost control.
- Sales revenue decreased by 1,926.2 billion yen year-on-year due to COVID-19 impact.
- Operating profit for the nine months decreased by 192.2 billion yen compared to the previous year.
- Decrease in motorcycle sales revenue by 39.3 billion yen primarily in Asia.
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 |
Consolidated Financial Results for the Fiscal Nine Months
Fiscal nine months | Fiscal nine months | 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 |
Forecasts for the Fiscal Year Ending March 31, 2021 (FY21)
FY20 results | Previous FY21 （2020/11/6） | Revised FY21 (2021/2/9) | Difference compared to FY20 results | Difference compared | ||
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 | JPY to |
*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.
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View original content:SOURCE Honda Motor Co., Ltd.
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