Honda Motor Co., Ltd. Reports Consolidated Financial Results For The Fiscal Third Quarter Ended December 31, 2014

Honda Motor Corp ©

TOKYO, Japan, January 30, 2015 - Honda Motor Co., Ltd. announced its consolidated financial results for the fiscal third quarter ended December 31, 2014.

Consolidated operating income for the fiscal third quarter (October 1, 2014 through December 31, 2014) amounted to 177.2 billion yen, a decrease of 22.5% compared to the same period last year, due to profit-reducing factors such as a difficult automobile market environment in Japan and an increase in quality-related expenses mainly in North America. This was despite profit-increasing factors such as an increase in motorcycle sales in Asia and favorable currency effects associated with depreciation of the Japanese yen. Consolidated income before income taxes for the fiscal third quarter amounted to 194.1billion yen, a decrease of 10.4% compared to the same period last year. Consolidated net income^*1 for the fiscal third quarter amounted to 136.5 billion yen, a decrease of 15.1% compared to the same period last year.

Consolidated operating income for the fiscal nine months (April 1, 2014 through December 31, 2014) amounted to 539.7 billion yen, a decrease of 7.7% compared to the same period last year, and consolidated net income^*1 amounted to 424.9 billion yen, an increase of 5.3% compared to the same period last year.

Reflecting the fiscal nine month results, as well as the forecasted favorable effect of yen depreciation, a forecasted decline in unit sales in Japan and China due to the difficult automobile market environment and a forecasted increase in quality-related expenses mainly in North America, Honda made some revisions to the previously announced forecasts for the current fiscal year (April 1, 2014 through March 31, 2015). The previously announced forecast for consolidated operating income was revised downward from 770.0 billion yen to 720.0 billion yen. The forecast for consolidated net income^*1 for the current fiscal year was also revised downward from the previous 565.0 billion yen to 545.0 billion yen.

The quarterly dividend for the fiscal third quarter will be 22 yen per share, a 2 yen increase compared to the quarterly dividend for the same period last year. The total cash dividend to be paid for the fiscal year ending March 31, 2015 is expected to be 88 yen per share, an increase of 6 yen per share from the previous fiscal year.

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

		3rd quarter ended Dec. 31, 2013 (3 months period)	3rd quarter ended Dec. 31, 2014 (3 months period)	Difference	Fiscal 9 months  ended Dec. 31, 2013 (9 months period)	Fiscal 9 months  ended Dec. 31, 2014 (9 months period)	Difference
Honda Group Unit Sales*2 (million units)	Motorcycles*4	4.251	4.432	+0.181	12.521	13.150	+0.629
	Automobiles*5	1.082	1.028	-0.054	3.128	3.160	+0.032
	Power Products	1.162	1.148	-0.014	4.046	3.944	-0.102
Consolidated Unit Sales*3 (million units)	Motorcycles*4	2.657	2.763	+0.106	7.613	7.963	+0.350
	Automobiles*5	0.900	0.877	-0.023	2.627	2.652	+0.025
	Power Products	1.162	1.148	-0.014	4.046	3.944	-0.102
Financial Results (billion yen)	Net sales and other operating revenue	3,020.8	3,289.9	+269.0	8,745.2	9,293.0	+547.8
	Operating income	228.5	177.2	-51.3	584.9	539.7	-45.2
	Income before income taxes	216.6	194.1	-22.4	554.2	572.7	+18.5
	Equity in income of affiliates	31.6	28.5	-3.0	95.0	89.9	-5.1
	Net income*1	160.7	136.5	-24.2	403.5	424.9	+21.3
Quarterly dividend per share (yen)		20	22	+2	60	66	+6
Honda’s Average Rate (yen)	USD =	100	114	Down by 14 yen	99	107	Down by 8 yen
	EUR =	139	144	Down by 5 yen	134	141	Down by 7 yen

Forecasts for the Fiscal Year ending March 31, 2015 (FY15)

		FY14 results	Previously announced FY15 forecasts (2014/10/28)	Revised FY15   forecasts (2015/1/30)	Difference compared to FY14 results	Difference compared to previously announced forecasts
Honda Group Unit Sales*2 (million units)	Motorcycles	17.021	17.950	17.815	+0.794	-0.135
	Automobiles*5	4.323	4.620	4.450	+0.127	-0.170
	Power Products	6.036	6.185	6.120	+0.084	-0.065
Consolidated Unit Sales*3 (million units)	Motorcycles	10.343	10.850	10.790	+0.447	-0.060
	Automobiles*5	3.560	3.760	3.650	+0.090	-0.110
	Power Products	6.036	6.185	6.120	+0.084	-0.065
Financial Results/ Forecasts (billion yen)	Net sales and other operating revenue	11,842.4	12,750.0	12,900.0	+1,057.5	+150.0
	Operating income	750.2	770.0	720.0	-30.2	-50.0
	Income before income taxes	728.9	765.0	745.0	+16.0	-20.0
	Equity in income of affiliates	132.4	120.0	120.0	-12.4	―
	Net income*1	574.1	565.0	545.0	-29.1	-20.0
Annual dividend per share (yen)		82	88	88	+6	―
Honda’s Average Rate (yen)	USD =	100	104	109	Down by 9 yen	Down by 5 yen
	EUR =	136	137	138	Down by 2 yen	Down by 1 yen

*1 Net income attributable to Honda Motor Co., Ltd. based on U.S. generally accepted accounting principles.

*2 Honda Group Unit Sales is the total unit sales of completed products (motorcycles, ATVs, automobiles, power products) of Honda, its consolidated subsidiaries and its affiliates accounted for under the equity method.

*3 Consolidated Unit Sales is the total unit sales of completed products (motorcycles, ATVs, automobiles, power products) corresponding to consolidated net sales, which consists of unit sales of completed products of Honda and its consolidated subsidiaries.

*4 Honda Group Unit Sales and Consolidated Unit Sales of ATVs included in motorcycle business for the fiscal 3rd quarter ended December 31, 2013 and 2014 are 33 thousand units and 40 thousand units, respectively. Honda Group Unit Sales and Consolidated Unit Sales of ATVs included in motorcycle business for the fiscal nine months ended December 31, 2013 and 2014 are 82 thousand units and 93 thousand units, respectively.

*5 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 U.S. generally accepted accounting principles and are not included in consolidated net sales to the external customers in our automobile business. As a result, they are not included in Consolidated Unit Sales, but are included in Honda Group Unit Sales of our automobile business. 

Source honda Motor Co. by press release ©