Nov 06, 2020 18:07 JST

Source: Honda

Honda: Consolidated Financial Summary for the Fiscal 2nd Quarter Ended September 30, 2020

TOKYO, Nov 06, 2020 - (JCN Newswire) - Despite a decrease in demand due to the impact of the COVID-19 pandemic, consolidated operating profit for the fiscal first half amounted to 169.2 billion yen, back in the black, due primarily to control of selling, general and administrative (SG&A) expenses resulting from a fundamental review of business activities in all areas.

Consolidated operating profit for the fiscal second quarter amounted to 282.9 billion yen, an increase of 28.5% compared to the same period last year, due primarily to control of SG&A expenses and cost reduction efforts. This was despite a decrease in profit related to changes in sales revenue and model mix.

Concerning the current fiscal year forecast, although the future outlook remains uncertain due to the impact of COVID-19, the forecast for consolidated operating profit was revised upward to 420 billion yen reflecting the business constitution built during the fiscal first half.

Quarterly dividend for the fiscal second quarter will be 19 yen per share, an increase of 8 yen per share compared to the previously announced forecast; total dividends paid for the fiscal year are planned to be 68 yen per share.

I. Consolidated financial summary for the fiscal first half (6 months) ended September 30, 2020

- Sales revenue: 5,775.1 billion yen (a year-on-year decrease of 25.2%)
- The decrease was due primarily to a decrease in sales revenue from all businesses as a result of the impact of the COVID-19 pandemic.
- Operating profit: 169.2 billion yen (a year-on-year decrease of 64.2%)
- The improvement was made due primarily to control of SG&A expenses and cost reduction efforts. This was despite a decrease in profit related to changes in sales revenue and model mix.
- Profit before income taxes: 272.2 billion yen
- Profit for the period attributable to owners of the parent: 160.0 billion yen
(a year-on-year decrease by 56.6%)

II . Consolidated financial summary and business-by-business results for the fiscal second quarter (3 months) ended September 30, 2020

- Sales revenue: 3,651.3 billion yen (a year-on-year decrease of 2.1%)
- The decrease was due primarily to a decrease in sales revenue from automobile businesses and unfavorable foreign currency translation effects.
- Operating profit: 282.9 billion yen (a year-on-year increase of 28.5%)
- The increase was due primarily to control of SG&A expenses and cost reduction efforts. This was despite a decrease in profit related to changes in sales revenue and model mix.

1) Motorcycle business

Sales revenue: 493.0 billion yen (a year-on-year decrease of 29.4 billion yen)
Although sales are recovering in many countries, sales revenue experienced a year-on-year decrease due primarily to unfavorable currency effects.

Operating profit: 68.4 billion yen (a year-on-year decrease of 9.3 billion yen).
The improvement was made due primarily to control of SG&A expenses and cost reduction efforts. This was despite a decrease in profit related to changes in sales revenue and model mix.

2) Automobile business

Sales revenue: 2,467.0 billion yen (a year-on-year decrease of 63.7 billion yen)
Although sales are gradually recovering in many countries as restrictions on economic activities are being lifted, sales revenue experienced a year-on-year decrease due to a decrease in sales mainly in North America and Asia.

Operating profit: 125.3 billion yen (a year-on-year increase of 50.4 billion yen)
The increase was made due primarily to control of SG&A expenses and cost reduction efforts. This was despite a decrease in profit related to changes in sales revenue and model mix. The operating profit margin also improved.

3) Financial Services business

Operating profit: 93.2 billion yen (a year-on-year increase of 26.9 billion yen)
The increase was due primarily to a decrease in credit losses related to automobile sales.

4) Life Creation (power products) and Other businesses

Operating loss: 4.1 billion yen
(operating profit experienced a year-on-year decrease by 5.2 billion yen)
The decrease was due primarily to a decrease in profit related to changes in sales revenue and model mix. Aircraft and aircraft engine business, which is included in other businesses, accounted for operating loss of 8.1 billion yen.

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

The forecast for consolidated operating profit for FY21 was revised upward from the previously announced 200 billion yen to 420 billion yen reflecting an increase in unit sales and the business constitution built during the fiscal first half.

Honda will continue making steady progress in improving its business structure.

For the full report, please visit: https://global.honda/newsroom/news/2020/c201106eng.html

Source: Honda
Sectors: Automotive

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

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