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Honda announces Q1 earnings

Honda Motor Co., Ltd. (NYSE: HMC) announced its consolidated financial results for the fiscal first quarter ended June 30, 2016.

First quarter results

Honda's consolidated profit for the period attributable to owners of the parent for the fiscal first quarter endedJune 30, 2016 totaled JPY 174.6 billion (USD 1,698 million), a decrease of 6.1 percent from the same period last year, due primarily to an increase in Income tax expense. Earnings per share attributable to owners of the parent for the quarter amounted to JPY 96.93 (USD 0.94), a decrease of JPY 6.29 (USD 0.06) from JPY 103.22 for the corresponding period last year. One Honda American Depository Share represents one common share.

Consolidated sales revenue for the quarter amounted to JPY 3,471.7 billion (USD 33,736 million), a decrease of 6.3 percent from the same period last year, due primarily to unfavorable foreign currency translation effects, despite increased consolidated unit sales in automobile and motorcycle business operations.

Consolidated operating profit for the quarter amounted to JPY 266.8 billion (USD 2,593 million), an increase of 11.5 percent from the same period last year, due primarily to continuing cost reduction efforts and an increase in profit attributable to increased sales revenue and model mix, as well as decreased SG&A expenses, including quality related expenses, despite unfavorable foreign currency effects and the effects of the 2016 Kumamoto Earthquake.

Share of profit of investments accounted for using the equity method for the quarter amounted to JPY 27.2 billion (USD 265 million) for the quarter, a decrease of 29 percent from the corresponding period last year.

Consolidated profit before income taxes for the quarter totaled JPY 288.4 billion (USD 2,803 million), an increase of 2.2 percent from the same period last year.

Business Segment

In motorcycle business operations, sales revenue decreased 8.5 percent, to JPY 432.4 billion (USD 4,202 million) from the same period last year. Operating profit totaled JPY 31.1 billion (USD 303 million), a decrease of 43.9 percent from the same period last year.

 

In power product and other businesses operations, sales revenue decreased 8.3 percent, to JPY 75.6 billion (USD 735 million) from the same period last year. Operating profit totaled JPY 0.5 billion (USD 5 million), an increase of 2.9 percent from the same period last year.

Explanatory note: United States dollar amounts have been translated from yen solely for the convenience of the reader at the rate of JPY 102.91=USD 1, the mean of the telegraphic transfer selling exchange rate and the telegraphic transfer buying exchange rate prevailing on the Tokyo foreign exchange market on June 30, 2016.

 

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