Honda Motor Co., Ltd. (HMC:NYSE) Announced its Consolidated Financial Summary for the Fiscal 2nd Quarter Ended September 30, 2022 and Forecasts for the Fiscal Year Ending March 31, 2023
Honda Motor Co. reported a consolidated operating profit of 453.4 billion yen for the first half of FY23, marking an increase of 11.2 billion yen year-over-year. Despite challenges like decreased auto production and rising raw material costs, revenue climbed to 8,085.3 billion yen, a 15.7% increase. However, profit attributable to owners fell by 50.6 billion yen to 338.5 billion yen. The company revised its full-year operating profit forecast upwards by 40 billion yen to 870 billion yen, with expectations for continued motorcycle sales growth in Asia.
- Consolidated operating profit for the first half reached 453.4 billion yen, up 2.5% year-over-year.
- Sales revenue increased 15.7% to 8,085.3 billion yen primarily driven by higher motorcycle sales.
- Revised full-year operating profit forecast up by 40 billion yen to 870 billion yen.
- Profit attributable to owners decreased by 50.6 billion yen to 338.5 billion yen due to lower equity method investments.
- Operating profit for the automobile business fell 45.7% to 63.5 billion yen.
TOKYO, Nov. 9, 2022 /PRNewswire/ --
- Despite some unfavorable factors such as a decrease in automobile production and unit sales due to the impact of the semiconductor supply shortage, and an increase in the cost of raw materials, consolidated operating profit for the fiscal first half (6 months) ended September 30, 2022, amounted to 453.4 billion yen (a year-on-year increase by 11.2 billion yen). This was due primarily to pricing that reflects increased product value, a reduction of incentives, an increase in motorcycle unit sales and favorable currency effects.
- Consolidated profit for the fiscal first half (6 months) attributable to owners of the parent amounted to 338.5 billion yen (a year-on-year decrease by 50.6 billion yen), due primarily to a decrease in the share of profit of investments accounted for using the equity method.
- Despite the impact of a decrease in automobile unit sales and the forecasted continuation of upward pressure on costs, the previously announced forecast for consolidated operating profit for the current fiscal year ending March 31, 2023 (FY23) was revised upward by 40 billion yen to 870 billion yen reflecting an increase in motorcycle unit sales in some countries such as India and Vietnam and recent currency effects.
- The previously announced forecast for profit for the fiscal year attributable to owners of the parent was revised upward by 15 billion yen to 725 billion yen.
I. Consolidated financial summary and business-by-business results for the fiscal first half (6 months) ended September 30, 2022
- Sales revenue: 8,085.3 billion yen (a year-on-year increase of
15.7% )
Increase due primarily to higher motorcycle sales and favorable currency effects. - Operating profit: 453.4 billion yen (a year-on-year increase of
2.5% ) - Profit for the period attributable to owners of the parent: 338.5 billion yen (a year-on-year decrease of
13.0% ).
1) Motorcycle business
Sales revenue: 1,412.6 billion yen (a year-on-year increase of
Increase due primarily to higher sales in Asia and favorable currency effects.
Operating profit: 224.7 billion yen (a year-on-year increase of
Increase due primarily to an increase in profit attributable to higher sales volume, price and cost impacts, and favorable currency effects.
2) Automobile business
Sales revenue: 5,003.9 billion yen (a year-on-year increase of
Although sales decreased mainly in North America, sales revenue experienced a year-on-year increase due primarily to favorable currency effects.
Operating profit: 63.5 billion yen (a year-on-year decrease of
Decrease due primarily to a decrease in profit attributable to lower sales volume.
Combined with operating profit from financial services business related to automobile sales, the estimated operating profit for automobile business is 211.3 billion yen.
3) Financial Services business
Operating profit: 153.0 billion yen (a year-on-year decrease of
4) Power Product and Other businesses
Operating profit: 12.0 billion yen (a year-on-year increase of 11.9 billion yen)
Aircraft/aircraft engine business, which is included in "Other businesses," accounted for an operating loss of 12.0 billion yen.
II. Forecasts for the Fiscal Year Ending March 31, 2023 (FY23)
- Sales revenue: 17,400 billion yen
(upward revision of the previously announced forecast by 650 billion yen) - Operating profit: 870 billion yen
(upward revision of the previously announced forecast by 40 billion yen) - Profit for the fiscal year attributable to owners of the parent: 725 billion yen
(upward revision of the previously announced forecast by 15 billion yen)
Consolidated Financial Results for the Fiscal First Half Ended September 30, 2022
Fiscal first half ended Sep. 30, 2021 (6 months period) | Fiscal first half ended Sep. 30, 2022 (6 months period) | Difference | ||
Honda Group Unit Sales*1 (million units) | Motorcycles | 8.173 | 9.202 | +1.029 |
Automobiles*3 | 1.915 | 1.785 | -0.130 | |
Power Products | 3.230 | 2.935 | -0.295 | |
Consolidated Unit Sales*2 (million units) | Motorcycles | 5.087 | 6.343 | +1.256 |
Automobiles*3 | 1.182 | 1.093 | -0.089 | |
Power Products | 3.230 | 2.935 | -0.295 | |
Financial Results (billion yen) | Sales revenue | 6,988.2 | 8,085.3 | +1,097.0 |
Operating profit | 442.1 | 453.4 | +11.2 | |
Share of profit of investments accounted for using the equity method | 107.2 | 82.9 | -24.3 | |
Profit before income taxes | 560.3 | 515.8 | -44.5 | |
Profit for the period attributable to owners of the parent | 389.2 | 338.5 | -50.6 | |
Honda's Average Rate (yen) | USD= | 110 | 134 | JPY depreciated |
Forecasts for the Fiscal Year Ending March 31, 2023 (FY23)
FY22 results | Previous FY23 forecasts （2022/8/10） | Revised FY23 forecasts (2022/11/9) | Difference compared to FY22 results | Difference | ||
Honda Group Unit Sales*1 (million units) | Motorcycles | 17.027 | 18.560 | 18.430 | +1.403 | -0.130 |
Automobiles*3 | 4.074 | 4.200 | 4.100 | +0.026 | -0.100 | |
Power Products | 6.200 | 5.665 | 5.665 | -0.535 | ― | |
Consolidated Unit Sales*2 (million units) | Motorcycles | 10.721 | 11.660 | 12.020 | +1.299 | +0.360 |
Automobiles*3 | 2.424 | 2.520 | 2.465 | +0.041 | -0.055 | |
Power Products | 6.200 | 5.665 | 5.665 | -0.535 | ― | |
Financial Results (billion yen) | Sales revenue | 14,552.6 | 16,750.0 | 17,400.0 | +2,847.3 | +650.0 |
Operating profit | 871.2 | 830.0 | 870.0 | -1.2 | +40.0 | |
Share of profit of investments accounted for using the equity method | 202.5 | 215.0 | 225.0 | +22.4 | +10.0 | |
Profit before income taxes | 1,070.1 | 1,040.0 | 1,080.0 | +9.8 | +40.0 | |
Profit for the year attributable to owners of the parent | 707.0 | 710.0 | 725.0 | +17.9 | +15.0 | |
Annual dividend per share (yen) | 120 | 120 | 120 | ― | ― | |
Honda's Average Rate (yen) | USD= | 112 | 125 | 135 | JPY to USD by 22 yen/dollar | JPY to 10 yen/dollar |
Supplemental data
Consolidated Financial Results for the Fiscal 2nd Quarter Ended September 30, 2022
2nd quarter ended Sep. 30, 2021 (3 months period) | 2nd quarter Sep. 30, 2022 (3 months period) | Difference | ||
Honda Group Unit Sales*1 (million units) | Motorcycles | 4.294 | 4.951 | +0.657 |
Automobiles*3 | 0.917 | 0.970 | +0.053 | |
Power Products | 1.522 | 1.389 | -0.133 | |
Consolidated Unit Sales*2 (million units) | Motorcycles | 2.695 | 3.371 | +0.676 |
Automobiles*3 | 0.574 | 0.564 | -0.010 | |
Power Products | 1.522 | 1.389 | -0.133 | |
Financial Results (billion yen) | Sales revenue | 3,404.3 | 4,255.7 | +851.3 |
Operating profit | 198.9 | 231.2 | +32.2 | |
Share of profit of investments accounted for using the equity method | 51.3 | 60.3 | +9.0 | |
Profit before income taxes | 249.0 | 278.4 | +29.3 | |
Profit for the period attributable to owners of the parent | 166.6 | 189.2 | +22.5 | |
Honda's Average Rate (yen) | USD= | 110 | 138 | JPY depreciated |
*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 and others by our Japanese finance subsidiaries and provided 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
View original content:SOURCE Honda Motor Co., Ltd.
FAQ
What were Honda's Q2 2023 earnings results?
How did Honda's profit attributable to owners change in Q2 FY23?
What is Honda's revised forecast for FY23?
What factors contributed to Honda's increased sales revenue in FY23?
