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Corporate
Japan
February 3, 2017

Consolidated Financial Summary for the Fiscal 3rd Quarter ended December 31, 2016

TOKYO, Japan, February 3, 2017 - Honda Motor Co., Ltd. announced its consolidated financial results for the fiscal third quarter ended December 31, 2016.

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. This was achieved despite unfavorable currency effects. 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.

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.

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. 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.

The quarterly dividend for the fiscal third quarter will 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).

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

    3rd quarter ended
Dec. 31, 2015
(3 months period)
3rd quarter
ended
Dec. 31, 2016
(3 months period)
Difference Fiscal 9 months ended
Dec. 31, 2015
(9 months period)
Fiscal 9 months ended
Dec. 31, 2016
(9 months period)
Difference
Honda Group
Unit Sales*1
(million units)
Motorcycles 4.407 4.523 +0.116 12.882 13.413 +0.531
Automobiles*3 1.228 1.312 +0.084 3.514 3.743 +0.229
Power Products 1.177 1.175 -0.002 4.010 3.903 -0.107
Consolidated
Unit Sales*2
(million units)
Motorcycles 2.654 2.675 +0.021 7.939 8.548 +0.609
Automobiles*3 0.879 0.925 +0.046 2.656 2.723 +0.067
Power Products 1.177 1.175 -0.002 4.010 3.903 -0.107
Financial
Results
(billion yen)
Sales revenue 3,617.2 3,501.0 -116.1 10,943.2 10,235.7 -707.4
Operating profit 163.0 207.6 +44.6 567.2 702.6 +135.4
Share of profit of investments accounted for using the equity method 45.0 49.1 +4.0 117.6 116.2 -1.3
Profit before income taxes 200.8 260.9 +60.0 694.1 819.9 +125.8
Profit for the period attributable
to owners of the parent
124.1 168.8 +44.6 437.9 520.6 +82.6
Quarterly dividend per share (yen) 22 24 +2 66 68 +2
Honda’s
Average
Rate (yen)
USD= 122 109 Up by
13 yen
122 107 Up by
15 yen

Forecasts for the Fiscal Year ending March 31, 2017 (FY17)

    FY16 results Previously announced FY17 forecasts
(2016/10/31)
Newly announced FY17 forecasts
(2017/2/3)
Difference compared to FY16 results Difference compared to previously announced forecasts
Honda Group
Unit Sales*1
(million units)
Motorcycles 17.055 18.270 17.700 +0.645 -0.570
Automobiles*3 4.743 4.980 5.005 +0.262 +0.025
Power Products 5.965 6.060 6.060 +0.095  ―
Consolidated
Unit Sales*2
(million units)
Motorcycles 10.572 11.690 11.260 +0.688 -0.430
Automobiles*3 3.636 3.705 3.695 +0.059 -0.010
Power Products 5.965 6.060 6.060 +0.095
Financial
Results/
Forecasts
(billion yen)
Sales revenue 14,601.1 13,400.0 13,800.0 -801.1 +400.0
Operating profit 503.3 650.0 785.0 +281.6 +135.0
Share of profit of investments accounted for using the equity method 126.0 140.0 150.0 +23.9 +10.0
Profit before income taxes 635.4 770.0 925.0 +289.5 +155.0
Profit for the year
attributable to owners of the
parent
344.5 415.0 545.0 +200.4 +130.0
Annual dividend per share (yen) 88 88 92 +4 +4
Honda’s
Average
Rate (yen)
USD= 120 103 107 Up by
13 yen
Down by
4 yen
  • *1Honda Group Unit Sales is the total unit sales of completed products (motorcycles, ATVs, automobiles, power products) of Honda, its consolidated subsidiaries and its affiliates and joint ventures accounted for using the equity method.
  • *2Consolidated Unit Sales is the total unit sales of completed products (motorcycles, ATVs, automobiles, power products) corresponding to consolidated sales revenue, which consists of unit sales of completed products of Honda and its consolidated subsidiaries.
  • *3Certain 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 IFRS and are not included in consolidated sales revenue to the external customers in our automobile business. Accordingly, they are not included in Consolidated Unit Sales, but are included in Honda Group Unit Sales of our automobile business.