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Honda sees double-digit sales revenue increase in Q3

Honda Motor Co., Ltd. has 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).

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).

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