I. Consolidated financial summary for the fiscal first half (6 months) ended September 30, 2020
- Sales revenue: 5,775.1 billion yen (a year-on-year decrease of 25.2%)
The decrease was due primarily to a decrease in sales revenue from all businesses as a result of the impact of the COVID-19 pandemic. - Operating profit: 169.2 billion yen (a year-on-year decrease of 64.2%)
The improvement was made due primarily to control of SG&A expenses and cost reduction efforts. This was despite a decrease in profit related to changes in sales revenue and model mix. - Profit before income taxes: 272.2 billion yen
- Profit for the period attributable to owners of the parent: 160.0 billion yen
(a year-on-year decrease by 56.6%)
II . Consolidated financial summary and business-by-business results for the fiscal second quarter (3 months) ended September 30, 2020
- Sales revenue: 3,651.3 billion yen (a year-on-year decrease of 2.1%)
The decrease was due primarily to a decrease in sales revenue from automobile businesses and unfavorable foreign currency translation effects. - Operating profit: 282.9 billion yen (a year-on-year increase of 28.5%)
The increase was due primarily to control of SG&A expenses and cost reduction efforts. This was despite a decrease in profit related to changes in sales revenue and model mix.
- 1)Motorcycle business
Sales revenue: 493.0 billion yen (a year-on-year decrease of 29.4 billion yen)
Although sales are recovering in many countries, sales revenue experienced a year-on-year decrease due primarily to unfavorable currency effects.Operating profit: 68.4 billion yen (a year-on-year decrease of 9.3 billion yen).
The improvement was made due primarily to control of SG&A expenses and cost reduction efforts. This was despite a decrease in profit related to changes in sales revenue and model mix. - 2)Automobile business
Sales revenue: 2,467.0 billion yen (a year-on-year decrease of 63.7 billion yen)
Although sales are gradually recovering in many countries as restrictions on economic activities are being lifted, sales revenue experienced a year-on-year decrease due to a decrease in sales mainly in North America and Asia.
Operating profit: 125.3 billion yen (a year-on-year increase of 50.4 billion yen)
The increase was made due primarily to control of SG&A expenses and cost reduction efforts. This was despite a decrease in profit related to changes in sales revenue and model mix. The operating profit margin also improved. - 3)Financial Services business
Operating profit: 93.2 billion yen (a year-on-year increase of 26.9 billion yen)
The increase was due primarily to a decrease in credit losses related to automobile sales. - 4)Life Creation (power products) and Other businesses
Operating loss: 4.1 billion yen
(operating profit experienced a year-on-year decrease by 5.2 billion yen)
The decrease was due primarily to a decrease in profit related to changes in sales revenue and model mix. Aircraft and aircraft engine business, which is included in other businesses, accounted for operating loss of 8.1 billion yen.
III. Forecasts for the Fiscal Year Ending March 31, 2021 (FY21)
- The forecast for consolidated operating profit for FY21 was revised upward from the previously announced 200 billion yen to 420 billion yen reflecting an increase in unit sales and the business constitution built during the fiscal first half.
- Honda will continue making steady progress in improving its business structure.
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SOURCE: Honda
