Honda Motor Co., Ltd. (HMC:NYSE) announced its Consolidated Financial Summary for the Fiscal 2nd Quarter Ended September 30, 2021 and Forecasts for the Fiscal Year Ending March 31, 2022

TOKYO, Nov. 5, 2021 /PRNewswire/ --

• Despite some unfavorable factors such as the supply shortage of certain parts including semiconductors and an increase in raw material costs, consolidated operating profit for the fiscal first half (6 months) ended September 30, 2021 amounted to 442.1 billion yen, a year-on-year increase by 272.9 billion yen compared to the same period last year which was heavily impacted by the COVID-19 pandemic. This was due primarily to the positive effect of increased unit sales, cost reduction efforts and favorable currency effects.
• Consolidated profit for the first half (6 months) attributable to owners of the parent amounted to 389.2 billion yen, a year-on-year increase by 229.1 billion yen, due mainly to an increase in the share of profit of investments accounted for using the equity method.
• Honda is expecting that the external business environment will remain challenging during this fiscal year due primarily to the resurgence of COVID-19, the supply shortage of certain parts including semiconductors and an increase in raw material prices. Based on this assumption, Honda plans to achieve fiscal year operating profit of 660 billion yen, which is equivalent to that of the previous fiscal year, through continuous efforts to improve profitability including the control of selling, general and administrative (SG&A) expenses and reduction of costs.
• The plan for profit for the year attributable to owners of the parent was revised to 555.0 billion yen.
• The interim dividend was 55 yen per share, and the forecast for total dividends to be paid for the fiscal year ending March 31, 2022 (FY22) is 110 yen per share.

I.  Consolidated financial summary for the first half (6 months) ended September 30, 2021

• Sales revenue: 6,988.2 billion yen (a year-on-year increase of 21.0%)
  
  Increase due to higher sales revenue from all businesses.
• Operating profit: 442.1 billion yen (a year-on-year increase of 161.2%)
  
  Increase due primarily to higher profit related to changes in sales volume and model mix.
• Profit for the period attributable to owners of the parent: 389.2 billion yen
  
  (a year-on-year increase of 143.2%)

II.  Consolidated financial summary and business-by-business results for the fiscal second quarter (3 months) ended September 30, 2021

• Sales revenue: 3,404.3 billion yen (a year-on-year decrease of 6.8%)
  
  Decrease due primarily to a decrease in sales revenue from automobile businesses.
• Operating profit: 198.9 billion yen (a year-on-year decrease of 29.7%)
  
  Decrease due primarily to a decrease in profit related to changes in sales volume and model mix.
• Profit for the period attributable to owners of the parent: 166.6 billion yen
  
  (a year-on-year decrease of 30.8%)

1)  Motorcycle business

Sales revenue: 505.5 billion yen (a year-on-year increase of 12.4 billion yen)

Although sales decreased in Asia, sales revenue experienced a year-on-year increase due primarily to favorable currency effects.

Operating profit: 67.4 billion yen (a year-on-year decrease of 1.0 billion yen).

Decrease due primarily to a decrease in profit related to changes in sales revenue and model mix.

2)  Automobile business

Sales revenue: 2,182.4 billion yen (a year-on-year decrease of 284.6 billion yen)

Decrease due primarily to a decrease in sales mainly in North America. 

Operating profit: 46.4 billion yen (a year-on-year decrease of 78.9 billion yen)

Decrease due primarily to a decrease in unit sales as a result of the supply shortage of certain parts, including semiconductors.

Combined with operating profit from financial services business related to automobile sales, the estimated operating profit for automobile business is 127.7 billion yen.

3)  Financial Services business

Operating profit: 84.5 billion yen (a year-on-year decrease of 8.7 billion yen)

Decrease due primarily to a year-on-year difference in the amount of the provision for credit losses recorded.

4)  Life Creation (power products) and Other businesses

Operating profit: 0.5 billion yen (a year-on-year increase of 4.7 billion yen)

Aircraft/aircraft engine business, which is included in "Other businesses," accounted for an operating loss of 7.2 billion yen.

III.  Forecasts for the Fiscal Year Ending March 31, 2022 (FY22) 

• Honda is expecting that the external business environment will remain challenging during this fiscal year due primarily to the resurgence of COVID-19, the supply shortage of certain parts including semiconductors and an increase in raw material costs. Based on this assumption, Honda plans to achieve fiscal year operating profit of 660 billion yen, which is equivalent to that of the previous fiscal year, through continuous efforts to improve profitability including the control of selling, general and administrative (SG&A) expenses and reduction of costs. 
• The plan for profit for the fiscal year attributable to owners of the parent was revised to 555.0 billion yen.

Consolidated Financial Results for the Fiscal 2nd Quarter Ended September 30, 2021

Consolidated Financial Results for the Fiscal First Half Ended September 30, 2021

Forecasts for the Fiscal Year Ending March 31, 2022 (FY22)

For Additional Information, please visit;

https://global.honda/investors/library/financialresult.html

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SOURCE Honda Motor Co., Ltd.