Honda Motor Co., Ltd. announced its consolidated financial results for the fiscal year and the fiscal fourth quarter ended March 31, 2017.
Consolidated operating profit for the fiscal year (April 1, 2016 through March 31, 2017) amounted to 840.7 billion yen, an increase of 67.0% compared to the previous fiscal year, due to profit-increasing factors such as an increase in unit sales due to the positive effect of new model introductions, a reduction of selling, general and administrative (SG&A) expenses that include quality-related expenses, cost reduction efforts and the positive effect of pension accounting. This was despite profit-reducing factors such as unfavorable currency effects and an increase in research and development (R&D) expenses. Consolidated profit for the fiscal year attributable to owners of the parent amounted to 616.5 billion yen, an increase of 79.0% compared to the previous fiscal year.
Consolidated operating profit for the fiscal fourth quarter (January 1, 2017 through March 31, 2017) amounted to 138.1 billion yen, an increase of 201.9 billion yen compared to the same period last year, due to profit-increasing factors such as a reduction of SG&A expenses that include quality-related expenses and cost reduction efforts. This was despite profit-reducing factors such as unfavorable currency effects and an increase in R&D expenses.
The quarterly dividend for the fiscal fourth quarter will be 24 yen per share, an increase of 2 yen per share compared to the same period last year. The total dividends to be paid for the fiscal year ended March 31, 2017 are planned to be 92 yen per share, an increase of 4 yen per share compared to the previous fiscal year. The year-end dividends are matters to be resolved at the general shareholders’ meeting.
Consolidated Financial Results for the Fiscal Year ended March 31, 2017 (FY17)
| FY16 results | Previously announced FY17 forecasts (2017/2/3) |
FY17 results | Difference compared to FY16 results | Difference compared to previously announced forecasts | |||
| Honda Group Unit Sales*1 (million units) |
Motorcycles | 17.055 | 17.700 | 17.661 | +0.606 | -0.039 | |
| Automobiles*3 | 4.743 | 5.005 | 5.028 | +0.285 | +0.023 | ||
| Power Products | 5.965 | 6.060 | 6.121 | +0.156 | +0.061 | ||
| Consolidated Unit Sales*2 (million units) |
Motorcycles | 10.572 | 11.260 | 11.237 | +0.665 | -0.023 | |
| Automobiles*3 | 3.636 | 3.695 | 3.683 | +0.047 | -0.012 | ||
| Power Products | 5.965 | 6.060 | 6.121 | +0.156 | +0.061 | ||
| Financial Results (billion yen) |
Sales revenue | 14,601.1 | 13,800.0 | 13,999.2 | -601.9 | +199.2 | |
| Operating profit | 503.3 | 785.0 | 840.7 | +337.3 | +55.7 | ||
| Share of profit of investments accounted for using the equity method | 126.0 | 150.0 | 164.7 | +38.7 | +14.7 | ||
| Profit before income taxes | 635.4 | 925.0 | 1,006.9 | +371.5 | +81.9 | ||
| Profit for the year attributable to owners of the parent |
344.5 | 545.0 | 616.5 | +272.0 | +71.5 | ||
| Annual dividend per share (yen) |
88 | 92 | 92 | +4 | － | ||
| Honda’s Average Rate (yen) |
USD= | 120 | 107 | 108 | Up by 12 yen |
Down by 1 yen |
|
Consolidated Financial Results for the Fiscal 4th Quarter
| 4th quarter ended March 31, 2016 (3 months period) |
4th quarter ended March 31, 2017 (3 months period) |
Difference | ||
| Honda Group Unit Sales*1 (million units) |
Motorcycles | 4.173 | 4.248 | +0.075 |
| Automobiles*3 | 1.229 | 1.285 | +0.056 | |
| Power Products | 1.955 | 2.218 | +0.263 | |
| Consolidated Unit Sales*2 (million units) |
Motorcycles | 2.633 | 2.689 | +0.056 |
| Automobiles*3 | 0.980 | 0.960 | -0.020 | |
| Power Products | 1.955 | 2.218 | +0.263 | |
| Financial Results (billion yen) |
Sales revenue | 3,657.8 | 3,763.4 | +105.5 |
| Operating profit (△ indicates the amount of loss) |
△ 63.8 | 138.1 | +201.9 | |
| Share of profit of investments accounted for using the equity method | 8.3 | 48.5 | +40.1 | |
| Profit before income taxes (△ indicates the amount of loss) |
△ 58.7 | 186.9 | +245.6 | |
| Profit for the period attributable to owners of the parent (△ indicates the amount of loss) |
△ 93.4 | 95.9 | +189.4 | |
| Quarterly dividend per share (yen) | 22 | 24 | +2 | |
| Honda’s Average Rate (yen) |
USD= | 115 | 114 | Up by 1 yen |
Forecasts for the Fiscal Year ending March 31, 2018 (FY18)
| FY17 results | FY18 forecasts | Difference | ||
| Honda Group Unit Sales*1 (million units) |
Motorcycles | 17.661 | 18.770 | +1.109 |
| Automobiles*3 | 5.028 | 5.080 | +0.052 | |
| Power Products | 6.121 | 6.165 | +0.044 | |
| Consolidated Unit Sales*2 (million units) |
Motorcycles | 11.237 | 12.220 | +0.983 |
| Automobiles*3 | 3.683 | 3.685 | +0.002 | |
| Power Products | 6.121 | 6.165 | +0.044 | |
| Financial Results/ Forecasts (billion yen) |
Sales revenue | 13,999.2 | 14,200.0 | +200.8 |
| Operating profit | 840.7 | 705.0 | -135.7 | |
| Share of profit of investments accounted for using the equity method | 164.7 | 175.0 | +10.2 | |
| Profit before income taxes | 1,006.9 | 875.0 | -131.9 | |
| Profit for the year attributable to owners of the parent |
616.5 | 530.0 | -86.5 | |
| Annual dividend per share (yen) | 92 | 96 | +4 | |
| Honda’s Average Rate (yen) |
USD= | 108 | 105 | Up by 3 yen |
- *1Honda Group Unit Sales is the total unit sales of the 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 the 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.
