Honda Reports Consolidated Financial Results For The Fiscal Second Quarter And Fiscal First Half Year

TOKYO -- November 4, 2015: Honda Motor Co., Ltd. (HMC; NYSE) today announced its consolidated financial results for the fiscal second quarter and fiscal first half year ended September 30, 2015.

Second Quarter Results

Honda's consolidated profit for the period attributable to owners of the parent for the fiscal second quarter ended September 30, 2015 totaled JPY 127.7 billion (USD 1,065 million), an increase of 6.9% from the same period last year. Earnings per share attributable to owners of the parent for the quarter amounted to JPY 70.88 (USD 0.59), an increase of JPY 4.56 (USD 0.04) from JPY 66.32 for the corresponding period last year. One Honda American Depository Share represents one common share.

Consolidated sales revenue for the quarter amounted to JPY 3,621.2 billion (USD 30,187 million), an increase of 15.6% from the same period last year, due primarily to increased revenue in automobile, motorcycle, financial services and power product and other business operations, as well as favorable foreign currency translation effects.

Consolidated operating profit for the quarter amounted to JPY 164.8 billion (USD 1,374 million), a decrease of 2.5% from the same period last year, due primarily to increased SG&A expenses, including quality related expenses and unfavorable foreign currency effects, despite an increase in profit attributable to increased sales revenue and model mix, and continuing cost reduction efforts.

Share of profit of investments accounted for using the equity method for the quarter amounted to JPY 34.1 billion (USD 285 million), an increase of 567.4% from the corresponding period last year.

Consolidated profit before income taxes for the quarter totaled JPY 210.9 billion (USD 1,758 million), an increase of 10.7% from the same period last year.

Business Segment

In motorcycle business operations, sales revenue increased 4.7%, to JPY 453.2 billion (USD 3,779 million) from the same period last year. Operating profit totaled JPY 49.0 billion (USD 409 million), an increase of 11.3% from the same period last year.

In automobile business operations, sales revenue increased 15.7%, to JPY 2,621.6 billion (USD 21,854 million) from the same period last year. Operating profit totaled JPY 67.7 billion (USD 565 million), a decrease of 12.4% from the same period last year.

In financial services business operations, sales revenue increased 28.7%, to JPY 462.0 billion (USD 3,851 million) from the same period last year. Operating profit increased 6.7% to JPY 51.8 billion (USD 432 million) from the same period last year.

In power product and other businesses operations, sales revenue increased 14.6%, to JPY 84.3 billion (USD 703 million) from the same period last year. Honda reported an operating loss of JPY 3.8 billion (USD 32 million), a decline of JPY 2.7 billion (USD 23 million) from the same period last year.

Explanatory note:
United States dollar amounts have been translated from yen solely for the convenience of the reader at the rate of JPY 119.96=USD 1, the mean of the telegraphic transfer selling exchange rate and the telegraphic transfer buying exchange rate prevailing on the Tokyo foreign exchange market on September 30, 2015.

Forecasts for the Fiscal Year Ending March 31, 2016

In regard to the forecasts of the financial results for the fiscal year ending March 31, 2016, Honda projects consolidated results to be as shown below:

Fiscal year ending March 31, 2016

Dividend per Share of Common Stock

The Board of Directors of Honda Motor Co., Ltd., at its meeting held on November 4, 2015, resolved to make the quarterly dividend JPY 22 per share of common stock, the record date of which is September 30, 2015. The total expected annual dividend per share of common stock for the fiscal year ending March 31, 2016, is JPY 88 per share.