Consolidated Financial Summary for the Fiscal 3rd Quarter Ended December 31, 2017

2018-02-02 15:06
Honda Motor Co., Ltd. announced its consolidated financial results for the fiscal third quarter ended December 31, 2017.

Consolidated sales revenue for the fiscal third quarter (October 1, 2017 through December 31, 2017) amounted to 3,957.1 billion yen, an increase of 13.0% compared to the same period last year, due primarily to an increase in sales revenue from all businesses. Consolidated operating profit for the fiscal third quarter amounted to 284.5 billion yen, an increase of 37.0% compared to the same period last year, due primarily to an increase in profit related to changes in sales volume and model mix. This was despite profit-decreasing factors such as an increase in selling, general and administrative (SG&A) expenses. Consolidated profit for the fiscal third quarter attributable to owners of the parent amounted to 570.2 billion yen, an increase of 401.4 billion yen compared to the same period last year, due primarily to the impact of a reduction of corporate tax rates in the U.S. (346.1 billion yen)*1.

Consolidated sales revenue for the fiscal nine months (April 1, 2017 through December 31, 2017) amounted to 11,446.4 billion, an increase of 11.8% compared to the same period last year, due primarily to an increase in sales revenue from all businesses and favorable foreign currency translation effects. Consolidated operating profit for the fiscal nine months amounted to 706.7 billion yen, an increase of 0.6% compared to the same period last year, due primarily to strong motorcycle sales mainly in Asia and the positive effect of cost reduction efforts. This was despite the settlement of multidistrict class action litigation and the reverse effect from the impact of pension plan amendments in the same period last year. Consolidated profit before income taxes for the fiscal nine months amounted to 924.5 billion yen, an increase of 12.7% compared to the same period last year, due primarily to an increase in share of profit of investments accounted for using the equity method. Consolidated profit for the fiscal nine months attributable to owners of the parent amounted to 951.5 billion yen, an increase of 430.9 billion yen compared to the same period last year, due primarily to the impact of a reduction of corporate tax rates in the U.S. (346.1 billion yen)*1.

Reflecting an increase in profit related to changes in sales volume and model mix in motorcycle and automobile businesses and the favorable foreign currency effects, the following upward revisions were made to the previously announced consolidated financial forecasts for the current fiscal year (April 1, 2017 through March 31, 2018). The forecast for consolidated sales revenue was revised upward by 150.0 billion yen to 15.2 trillion yen, the forecast for the operating profit was revised upward by 30.0 billion yen to 775.0 billion yen, and the forecast for profit for the current fiscal year attributable to owners of the parent was revised upward by 415.0 billion yen to 1.0 trillion yen.

The quarterly dividend for the fiscal third quarter will be 25 yen per share (an increase of 1 yen per share compared to the same period last year), and total dividends to be paid for the fiscal year ending March 31, 2018 are expected to be 98 yen per share (an increase of 6 yen per share compared to the previous fiscal year).

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

3rd quarter ended
Dec. 31, 2016
(3 months period) 3rd quarter
ended
Dec. 31, 2017
(3 months period) Difference Fiscal 9 months ended
Dec. 31, 2016
(9 months period) Fiscal 9 months
ended
Dec. 31, 2017
(9 months period) Difference
Honda Group
Unit Sales*2
(million units) Motorcycles 4.523 4.870 +0.347 13.413 14.807 +1.394
Automobiles*4 1.312 1.344 +0.032 3.743 3.903 +0.160
Power Products 1.175 1.196 +0.021 3.903 3.785 -0.118
Consolidated
Unit Sales*3
(million units) Motorcycles 2.675 3.096 +0.421 8.548 9.787 +1.239
Automobiles*4 0.925 0.932 +0.007 2.723 2.739 +0.016
Power Products 1.175 1.196 +0.021 3.903 3.785 -0.118
Financial
Results
(billion yen) Sales revenue 3,501.0 3,957.1 +456.0 10,235.7 11,446.4 +1,210.6
Operating profit 207.6 284.5 +76.8 702.6 706.7 +4.1
Share of profit of investments accounted for using the equity method 49.1 54.5 +5.3 116.2 189.7 +73.5
Profit before income taxes 260.9 346.8 +85.9 819.9 924.5 +104.5
Profit for the period attributable to owners of the parent 168.8 570.2 +401.4 520.6 951.5 +430.9
Quarterly dividend per share (yen) 24 25 +1 68 73 +5
Honda’s
Average
Rate (yen) USD= 109 113 Down by
4 yen 107 112 Down by
5 yen
Forecasts for the Fiscal Year ending March 31, 2018 (FY18)

FY17
results Previously announced FY18
forecasts
(2017/11/1) Newly announced FY18 forecasts
(2018/2/2) Difference compared to FY17 results Difference compared to previously announced forecasts
Honda Group
Unit Sales*2
(million units) Motorcycles 17.661 19.180 19.410 +1.749 +0.230
Automobiles*4 5.028 5.130 5.225 +0.197 +0.095
Power Products 6.121 6.165 6.165 +0.044 -
Consolidated
Unit Sales*3
(million units) Motorcycles 11.237 12.620 12.820 +1.583 +0.200
Automobiles*4 3.683 3.690 3.695 +0.012 +0.005
Power Products 6.121 6.165 6.165 +0.044 -
Financial
Results/
Forecasts
(billion yen) Sales revenue 13,999.2 15,050.0 15,200.0 +1,200.8 +150.0
Operating profit 840.7 745.0 775.0 -65.7 +30.0
Share of profit of investments accounted for using the equity method 164.7 205.0 240.0 +75.2 +35.0
Profit before income taxes 1,006.9 955.0 1,045.0 +38.0 +90.0
Profit for the year
attributable to owners of the parent 616.5 585.0 1,000.0 +383.4 +415.0
Annual dividend per share (yen) 92 96 98 +6 +2
Honda’s
Average
Rate (yen) USD= 108 109
Q3:110 yen
Q4:105 yen 110
Q4:105 yen Down by
2 yen Down by
1 yen
*1Impact of the re-measurement of deferred tax assets/liabilities of consolidated subsidiaries based on the reduction of corporate tax rates in the U.S.
*2Honda Group Unit Sales is the total unit sales of the 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.
*3Consolidated Unit Sales is the total unit sales of the 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.
*4Certain 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.

Source: Honda Motor Company

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