NEWS

Honda Motor Co., Ltd. Reports Consolidated Financial Results For The Fiscal Third Quarter Ended December 31, 2014

Friday, Jan 30, 2015

TOKYO, Jan. 30, 2015 /PRNewswire/ -- Honda Motor Co., Ltd. (NYSE: HMC) today announced its consolidated financial results for the fiscal third quarter ended December 31, 2014.

Third Quarter Results

Honda's consolidated net income attributable to Honda Motor Co., Ltd. for the fiscal third quarter ended December 31, 2014 totaled JPY 136.5 billion (USD 1,132 million), a decrease of 15.1% from the same period last year. Basic net income attributable to Honda Motor Co., Ltd. per common share for the quarter amounted to JPY 75.75 (USD 0.63), a decrease of JPY 13.43 (USD 0.11) from JPY 89.18 for the corresponding period last year. One Honda American Depository Share represents one common share.

Consolidated net sales and other operating revenue (herein referred to as "revenue") for the quarter amounted to JPY 3,289.9 billion (USD 27,291 million), an increase of 8.9% from the same period last year, due primarily to increased revenue in motorcycle business operations, as well as favorable foreign currency translation effects, despite decreased revenue in automobile business operations.

Consolidated operating income for the quarter amounted to JPY 177.2 billion (USD 1,470 million), a decrease of 22.5% from the same period last year, due primarily to a decrease in sales volume and model mix, as well as increased SG&A expenses including product warranty expenses, despite continuing cost reduction efforts and favorable foreign currency effects.

Consolidated income before income taxes and equity in income of affiliates for the quarter totaled JPY 194.1 billion (USD 1,610 million), a decrease of 10.4% from the same period last year.

Equity in income of affiliates amounted to JPY 28.5 billion (USD 237 million) for the quarter, a decrease of 9.7% from the corresponding period last year.

Business Segment

In motorcycle business operations, revenue increased 15.8%, to JPY 463.4 billion (USD 3,845 million) from the same period last year. Operating income totaled JPY 53.5 billion (USD 444 million), an increase of 55.2% from the same period last year.

In automobile business operations, revenue increased 7.0%, to JPY 2,538.5 billion (USD 21,058 million) from the same period last year. Operating income totaled JPY 76.4 billion (USD 634 million), a decrease of 50.4% from the same period last year.

In financial services business operations, revenue increased 21.9%, to JPY 213.4 billion (USD 1,770 million) from the same period last year. Operating income increased 19.6% to JPY 51.0 billion (USD 424 million) from the same period last year.

In power product and other businesses operations, revenue totaled JPY 74.5 billion (USD 618 million), an increase of 1.8% from the same period last year. Honda reported an operating loss of JPY 3.8 billion (USD 32 million), a decline of 0.9 billion (USD 8 million) from the same period last year.

Forecasts for the Fiscal Year Ending March 31, 2015

In regard to the forecasts of the financial results for the fiscal year ending March 31, 2015, Honda projects consolidated results to be as shown below:

Fiscal year ending March 31, 2015



Yen (billions)

Changes from FY 2014







Net sales and other operating revenue

12,900.0

+ 8.9%







Operating income

720.0

- 4.0 %







Net income attributable to

Honda Motor Co., Ltd.

545.0

- 5.1%



Yen



Basic net income attributable to

Honda Motor Co., Ltd. per common share

302.39



Dividend per Share of Common Stock

The Board of Directors of Honda Motor Co., Ltd., at its meeting held on January 30, 2015, resolved to make the quarterly dividend JPY 22 per share of common stock, the record date of which is December 31, 2014. The total expected annual dividend per share of common stock for the fiscal year ending March 31, 2015, is JPY 88 per share.

This announcement contains "forward-looking statements" as defined in Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Such statements are based on management's assumptions and beliefs taking into account information currently available to it. Therefore, please be advised that Honda's actual results could differ materially from those described in these forward-looking statements as a result of numerous factors, including general economic conditions in Honda's principal markets and foreign exchange rates between the Japanese yen and the U.S. dollar, the Euro and other major currencies, as well as other factors detailed from time to time.

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SOURCE Honda Motor Co., Ltd.