HONDA ANNOUNCES CONSOLIDATED THIRD QUATER PROFIT OF 207.6 BN YEN

Admin l Friday, February 03, 2017

TOKYO, Japan – Honda Motor Co., Ltd. today announced its consolidated financial results for the fiscal third quarter ended December 31, 2016. According to the financial statement released, Honda made a consolidated third quarter profit of 207.6 billion Yen.

“Consolidated operating profit for the fiscal third quarter (October 1, 2016 through December 31, 2016) amounted to 207.6 billion yen, an increase of 27.4% compared to the same period last year, due primarily to a decrease in selling, general and administrative (SG&A) expenses that included quality-related expenses and the positive effect of cost reduction efforts”, Honda said.

It added that this was achieved despite unfavorable currency effects, stresing that consolidated profit for the fiscal third quarter attributable to owners of the parent amounted to 168.8 billion yen, an increase of 35.9% compared to the same period last year.

The company also computed consolidated operating profit for the fiscal nine months (April 1, 2016 through December 31, 2016) amounted to 702.6 billion yen, an increase of 23.9% compared to the same period last year, due to the positive effect of cost reduction efforts, a decrease in selling, general and administrative (SG&A) expenses that included quality-related expenses, an increase in profit related to changes in sales volume and model mix, and the positive effect of pension accounting.

“This was despite the impact of the 2016 Kumamoto Earthquake and unfavorable currency effects. Consolidated profit for the fiscal nine months attributable to owners of the parent amounted to 520.6 billion yen, an increase of 18.9% compared to the same period last year”, Honda said.




It noted that despite a decline in consolidated unit sales for motorcycle and automobile businesses, reflecting foreign currency translation effects, the previously announced forecast for consolidated sales revenue for the current fiscal year (April 1, 2016 through March 31, 2017) was revised upward by 400.0 billion yen to 13.8 trillion yen.

Reflecting a decline in selling, general and administrative (SG&A) expenses, the positive effect of cost reduction efforts and favorable currency effect, the forecast for consolidated operating profit for the current fiscal year was revised upward by 135.0 billion yen to 785.0 billion yen, Honda said.

The forecasts for consolidated profit for the current fiscal year attributable to owners of the parent was revised upward by 130.0 billion yen to 545.0 billion yen.

Honda also announced a quarterly dividend for the fiscal third quarter to be 24 yen per share (an increase of 2 yen per share compare to the previously announced forecast), and total dividends to be paid for the fiscal year ending March 31, 2017 are expected to be 92 yen per share (an increase of 4 yen per share compared to the previously announced forecast).