Honda Motor Co., Ltd. Reports Consolidated Financial Results For The Fiscal Third Quarter And Fiscal Nine-Month Period Ended December 31, 2015

TOKYO -- January 29, 2016: Honda Motor Co., Ltd. (HMC; NYSE) today announced its consolidated financial results for the fiscal third quarter and fiscal first nine-month period ended December 31, 2015.

Third Quarter Results

Honda's consolidated profit for the period attributable to owners of the parent for the fiscal third quarter ended December 31, 2015 totaled JPY 124.1 billion (USD 1,030 million), a decrease of 18.5% from the same period last year. Earnings per share attributable to owners of the parent for the quarter amounted to JPY 68.91 (USD 0.57), a decrease of JPY 15.65 (USD 0.13) from JPY 84.56 for the corresponding period last year. One Honda American Depository Share represents one common share.

Consolidated sales revenue for the quarter amounted to JPY 3,617.2 billion (USD 29,991 million), an increase of 3.4% from the same period last year, due primarily to increased revenue in automobile and financial services business operations.

Consolidated operating profit for the quarter amounted to JPY 163 billion (USD 1,352 million), a decrease of 22.3% 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 45.0 billion (USD 374 million) for the quarter, an increase of 22.6% from the corresponding period last year.

Consolidated profit before income taxes for the quarter totaled JPY 200.8 billion (USD 1,666 million), a decrease of 24.0% from the same period last year.

Business Segment

In motorcycle business operations, sales revenue decreased 6.5%, to JPY 442.1 billion (USD 3,666 million) from the same period last year. Operating profit totaled JPY 49.5 billion (USD 410 million), a decrease of 6.6% from the same period last year.

In automobile business operations, sales revenue increased 3.3%, to JPY 2,652.4 billion (USD 21,992 million) from the same period last year. Operating profit totaled JPY 69.5 billion (USD 577 million), a decrease of 36.5% from the same period last year.

In financial services business operations, sales revenue increased 16.7%, to JPY 444.5 billion (USD 3,686 million) from the same period last year. Operating profit increased 2.6% to JPY 51.4 billion (USD 427 million) from the same period last year.

In power product and other businesses operations, sales revenue increased 0.8%, to JPY 77.9 billion (USD 646 million) from the same period last year. Honda reported an operating loss of JPY 7.4 billion (USD 62 million), a decline of JPY 4.7 billion (USD 39 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 120.61=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 December 31, 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 January 29, 2016, resolved to make the quarterly dividend JPY 22 per share of common stock, the record date of which is December 31, 2015. The total expected annual dividend per share of common stock for the fiscal year ending March 31, 2016, is JPY 88 per share.