Honda Motor Co., Ltd. (HMC:NYSE) announced its Consolidated Financial Summary for the Fiscal Nine Months Ended December 31, 2022 and Forecasts for the Fiscal Year Ending March 31, 2023
TOKYO, Feb. 10, 2023 /PRNewswire/ --
- Despite some unfavorable factors such as 1) a decrease in automobile production and unit sales due to the semiconductor supply shortage and the impact of COVID-19 in China, and 2) an increase in production costs due to an increase in the cost of raw materials and the impact of inflation, consolidated operating profit for the fiscal nine months amounted to 733.9 billion yen, a year-on-year increase by 62.2 billion yen. This was due primarily to pricing that reflects increased product value, an increase in motorcycle unit sales and favorable currency effects.
- Consolidated profit for the fiscal nine months attributable to owners of the parent amounted to 583.1 billion yen, a year-on-year increase by 1.0 billion yen
- Despite a decrease in automobile unit sales due to the semiconductor supply shortage and the impact of COVID-19 in China, and the upward pressure on costs due primarily to the impact of inflation, Honda managed to maintain the previously announced forecast for consolidated operating profit for the current fiscal year ending March 31, 2023 (FY23), 870.0 billion yen, reflecting pricing that reflects increased product value, an increase in motorcycle unit sales mostly in Asia and the company-wide efforts to further improve profitability.
- Honda will acquire its own shares, with the maximum acquisition amount of 70.0 billion yen, with the purposes including improving efficiency of its capital structure and implementing a flexible capital strategy.
I. Consolidated financial summary and business-by-business results for the fiscal nine months ended December 31, 2022
- Sales revenue: 12,523.4 billion yen (a year-on-year increase of 17.3%)
Increase due primarily to higher motorcycle sales and favorable currency effects. - Operating profit: 733.9 billion yen (a year-on-year increase of 9.3%)
- Profit for the period attributable to owners of the parent: 583.1 billion yen (a year-on-year increase of 0.2%).
1) Motorcycle business
Sales revenue: 2,202.3 billion yen (a year-on-year increase of 37.5%)
Increase due primarily to higher sales in Asia and favorable currency effects.
Operating profit: 376.5 billion yen (a year-on-year increase of 62.0%)
Increase due primarily to strong sales, positive effects of pricing that reflects increased product value and favorable currency effects.
2) Automobile business
Sales revenue: 7,723.5 billion yen (a year-on-year increase of 15.8%)
Increase due primarily to favorable currency effects.
Operating profit: 112.9 billion yen (a year-on-year decrease of 40.1%)
Decrease due primarily to higher raw material costs, impact of inflation and a decrease in unit sales.
Combined with operating profit from financial services business related to automobile sales, the estimated operating profit for automobile business is 325.8 billion yen.
3) Financial Services business
Operating profit: 220.3 billion yen (a year-on-year decrease of 14.6%)
4) Power Product and Other businesses
Operating profit : 24.1 billion yen (a year-on-year increase of 31.5 billion yen)
Aircraft/aircraft engine business, which is included in "Other businesses," accounted for an operating loss of 18.6 billion yen.
II. Forecasts for the fiscal year ending March 31, 2023 (FY23)
- Sales revenue: 17,250.0 billion yen
(downward revision of the previously announced forecast by 150.0 billion yen) - Operating profit: 870.0 billion yen
(no change from the previously announced forecast) - Profit for the fiscal year attributable to owners of the parent: 725.0 billion yen
(no change from the previously announced forecast)
Consolidated Financial Results for the Fiscal Nine Months Ended December 31, 2022
Fiscal nine months ended Dec. 31, 2021 (9 months period) | Fiscal nine months ended Dec. 31, 2022 (9 months period) | Difference | ||
Honda Group Unit Sales*1 (million units) | Motorcycles | 12.775 | 14.285 | +1.510 |
Automobiles*3 | 3.000 | 2.740 | -0.260 | |
Power Products | 4.500 | 4.121 | -0.379 | |
Consolidated Unit Sales*2 (million units) | Motorcycles | 7.964 | 9.570 | +1.606 |
Automobiles*3 | 1.792 | 1.712 | -0.080 | |
Power Products | 4.500 | 4.121 | -0.379 | |
Financial Results (billion yen) | Sales revenue | 10,677.0 | 12,523.4 | +1,846.4 |
Operating profit | 671.6 | 733.9 | +62.2 | |
Share of profit of investments accounted for using the equity method | 157.0 | 148.8 | -8.1 | |
Profit before income taxes | 845.2 | 859.3 | +14.1 | |
Profit for the period attributable to owners of the parent | 582.1 | 583.1 | +1.0 | |
Honda's Average Rate (yen) | USD= | 111 | 137 | +26*4 |
Forecasts for the Fiscal Year Ending March 31, 2023 (FY23)
FY22 results | Previous FY23 forecasts （2022/11/9） | Revised FY23 forecasts (2023/2/10) | Difference compared to FY22 results | Difference compared | ||
Honda Group Unit Sales*1 (million units) | Motorcycles | 17.027 | 18.430 | 18.730 | +1.703 | +0.300 |
Automobiles*3 | 4.074 | 4.100 | 3.850 | -0.224 | -0.250 | |
Power Products | 6.200 | 5.665 | 5.580 | -0.620 | -0.085 | |
Consolidated Unit Sales*2 (million units) | Motorcycles | 10.721 | 12.020 | 12.110 | +1.389 | +0.090 |
Automobiles*3 | 2.424 | 2.465 | 2.430 | +0.006 | -0.035 | |
Power Products | 6.200 | 5.665 | 5.580 | -0.620 | -0.085 | |
Financial Results (billion yen) | Sales revenue | 14,552.6 | 17,400.0 | 17,250.0 | +2,697.3 | -150.0 |
Operating profit | 871.2 | 870.0 | 870.0 | -1.2 | ― | |
Share of profit of investments accounted for using the equity method | 202.5 | 225.0 | 215.0 | +12.4 | -10.0 | |
Profit before income taxes | 1,070.1 | 1,080.0 | 1,080.0 | +9.8 | ― | |
Profit for the year attributable to owners of the parent | 707.0 | 725.0 | 725.0 | +17.9 | ― | |
Annual dividend per share (yen) | 120 | 120 | 120 | ― | ― | |
Honda's Average Rate (yen) | USD= | 112 | 135 | 135 | +23*4 | +0*4 |
Supplemental data
Consolidated Financial Results for the Fiscal 3rd Quarter Ended December 31, 2022
3rd quarter ended Dec. 31, 2021 (3 months period) | 3rd quarter ended Dec. 31, 2022 (3 months period) | Difference | ||
Honda Group Unit Sales*1 (million units) | Motorcycles | 4.602 | 5.083 | +0.481 |
Automobiles*3 | 1.085 | 0.955 | -0.130 | |
Power Products | 1.270 | 1.186 | -0.084 | |
Consolidated Unit Sales*2 (million units) | Motorcycles | 2.877 | 3.227 | +0.350 |
Automobiles*3 | 0.610 | 0.619 | +0.009 | |
Power Products | 1.270 | 1.186 | -0.084 | |
Financial Results (billion yen) | Sales revenue | 3,688.7 | 4,438.1 | +749.4 |
Operating profit | 229.4 | 280.4 | +51.0 | |
Share of profit of investments accounted for using the equity method | 49.7 | 65.9 | +16.1 | |
Profit before income taxes | 284.8 | 343.5 | +58.7 | |
Profit for the period attributable to owners of the parent | 192.9 | 244.6 | +51.6 | |
Honda's Average Rate (yen) | USD= | 114 | 142 | +28*4 |
*1 | Honda Group Unit Sales is the total unit sales of completed products (motorcycles, ATVs, Side-by-Sides, automobiles, power products) of Honda, its consolidated subsidiaries and its affiliates and joint ventures accounted for using the equity method. |
*2 | Consolidated Unit Sales is the total unit sales of completed products (motorcycles, ATVs, Side-by-Sides, automobiles, power products) corresponding to consolidated sales revenue, which consists of unit sales of completed products of Honda and its consolidated subsidiaries. |
*3 | Certain sales of automobiles that are financed with residual value type auto loans and others by our Japanese finance subsidiaries and provided 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. |
*4 | +: weak yen / - : strong yen |
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