Aug 05, 2020 18:45 JST

Source: Honda

Honda's Consolidated Financial Summary for the Fiscal Q1 Ended June 30, 2020 and Forecasts for the FY Ending March 31, 2021

- During the fiscal first quarter, business stagnated and demand declined significantly on a global basis due to the COVID-19. Production and sales activities of all Honda operations were impacted, as a result, sales and profit for the fiscal first quarter experienced a year-on-year decrease.
- Concerning the current fiscal year forecast, although the future outlook remains uncertain due to the impact of the COVID-19, Honda plans to achieve an operating profit of 200.0 billion yen and profit before income taxes of 365.0 billion yen by further strengthening its company-wide initiatives to improve earnings.
- Quarterly dividend for the fiscal first quarter will be 11 yen per share (a year-on-year decrease of 17 yen per share); total dividends paid for the fiscal year planned to be 44 yen per share.

TOKYO, Aug 05, 2020 - (JCN Newswire) - I. Consolidated Financial Summary and category of business results for the Fiscal 1st Quarter ended June 30, 2020

- Sales revenue: 2,123.7 billion yen (a year-on-year decrease by 46.9%) due primarily to a decrease in sales revenue from all businesses.

- Operating loss: 113.6 billion yen (a year-on-year decrease by 366.1 billion yen) due primarily to a decrease in profit related to changes in sales volume and model mix. This was despite a decrease in selling, general and administrative (SG&A) expenses.

- Loss before income taxes: 73.4 billion yen
The impact of the COVID-19 is estimated to be approximately 440.0 billion yen.

- Loss for the period attributable to owners of the parent: 80.8 billion yen (a year-on-year decrease by 253.1 billion yen).

(1) Motorcycle business

Sales revenue: 274.2 billion yen (a year-on-year decrease by 258.7 billion yen) due primarily to a decrease in unit sales mainly in Asia caused by the impact of the COVID-19.

Operating profit: 11.2 billion yen (a year-on-year decrease by 58.6 billion yen). Despite a decrease in unit sales, profit was secured due primarily to a decrease in R&D and SG&A expenses.

(2) Automobile business

Sales revenue: 1,255.7 billion yen (a year-on-year decrease by 1,494.4 billion yen) due to a decrease in sales especially in the U.S., Japan and India caused by the impact of the COVID-19.

Operating loss: 195.8 billion yen (a year-on-year decrease by 316.2 billion yen) due primarily to a decrease in unit sales. This was despite a decrease in SG&A expenses. Honda has been making progress in improving its business structure through cost and expense reductions even during this challenging time.

(3) Financial services business:

Operating profit: 71.5 billion yen (a year-on-year increase by 5.7 billion yen) due primarily to a difference in recorded amounts of provisions for credit losses.

(4) Life Creation (power products) and other businesses

Operating loss: 0.5 billion yen (a year-on-year improvement by 2.9 billion yen) due primarily to a decrease in R&D and SG&A expenses.

Aircraft and aircraft engine business, which is included in the other businesses, accounted for operating loss of 7.1 billion yen.

II. Forecasts for the for the Fiscal Year Ending March 31, 2021 (FY21)

Although the future outlook remains uncertain due to the impact of the COVID-19, Honda plans to achieve operating profit of 200.0 billion yen and profit before income taxes of 365.0 billion yen by further strengthening its initiatives to improve earnings.

Honda is expecting to recover from the unfavorable impact of the COVID-19 toward the end of the fiscal year; however, the current fiscal year forecast for profit before income tax includes an approximately 665.0 billion yen impact of the COVID-19.

Honda will strive to further enhance its earnings structure by making steady progress in on-going initiatives to improve its business structure.

For the full report, visit https://global.honda/newsroom/news/2020/c200805eng.html.

Source: Honda
Sectors: Automotive

Copyright ©2021 JCN Newswire. All rights reserved. A division of Japan Corporate News Network.

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