HMC Honda Motor Co Ltd

TOKYO, Feb. 9, 2022 /PRNewswire/ --

• Despite some unfavorable factors such as a decrease in automobile unit sales due to the supply shortage of certain parts including semiconductors and an increase in raw material cost, consolidated operating profit for the fiscal nine months amounted to 671.6 billion yen, a year-on-year increase by 224.6 billion yen, due primarily to cost reductions, control of incentives and favorable currency effects.
• Consolidated profit for the fiscal nine months attributable to owners of the parent amounted to 582.1 billion yen, a year-on-year increase by 138.0 billion yen.
• The previously announced forecast for consolidated operating profit for the current fiscal year (April 1, 2021 through March 31, 2022) was revised upward by 140 billion yen to 800 billion yen.
• The previously announced forecast for profit for the fiscal year attributable to owners of the parent was revised upward by 115 billion yen to 670 billion yen, a year-on-year increase.
  

I.  Consolidated financial summary and business-by-business results for the fiscal nine months ended December 31, 2021

• Sales revenue: 10,677.0 billion yen  (a year-on-year increase of 11.8%)
  Increase due to higher sales revenue from all businesses.
• Operating profit: 671.6 billion yen (a year-on-year increase of 50.3%)
  Increase due primarily to favorable currency effects and higher profit related to changes in sales revenue and model mix.
•  Profit for the period attributable to owners of the parent: 582.1 billion yen (a year-on-year increase of 31.1%)

1)  Motorcycle business

• Sales revenue: 1,602.0 billion yen (a year-on-year increase of 343.9 billion yen)
  Increase due primarily to a sales increase in Brazil.
• Operating profit: 232.3 billion yen (a year-on-year increase of 80.0 billion yen).
  Increase due primarily to an increase in profit related to changes in sales revenue and model mix.

2)  Automobile business

Sales revenue: 6,823.6 billion yen (a year-on-year increase of 462.7 billion yen)
Although sales decreased in North America, sales revenue experienced a year-on-year increase due primarily to an increase in sales in Asia and favorable currency effects.

Operating profit: 188.5 billion yen (a year-on-year increase of 135.9 billion yen)
Increase was due primarily to the control of selling, general and administrative (SG&A) expenses.

Combined with operating profit from financial services business related to automobile sales, the estimated operating profit for automobile business is 437.2 billion yen.

3)  Financial Services business

Operating profit: 258.1 billion yen (a year-on-year increase of 7.5 billion yen)
Increase due primarily to an increase in profit due to higher revenue. 

4)  Life Creation (power products) and Other businesses

Operating loss: 7.4 billion yen (a year-on-year improvement of 1.1 billion yen)
Aircraft/aircraft engine business, which is included in "Other businesses," accounted for an operating loss of 23.6 billion yen.

II.  Forecasts for the Fiscal Year Ending March 31, 2022(FY22) 

• Honda is expecting that the external business environment will remain challenging due primarily to the resurgence of COVID-19, the supply shortage of certain parts including semiconductors and a further increase in raw material cost. Despite this assumption, Honda made an upward revision to the previously announced forecast for consolidated operating profit for FY22 to 800 billion yen, an increase by 140 billion yen, reflecting its continuous efforts to improve profitability including the control of selling, general and administrative (SG&A) expenses and incentives.
• The previously announced forecast for profit for the fiscal year attributable to owners of the parent was revised upward by 115 billion yen to 670 billion yen.  

Consolidated Financial Results for the Fiscal Nine Months

Forecasts for the Fiscal Year Ending March 31, 2022 (FY22)

<Supplemental data>
Consolidated Financial Results for the Fiscal 3rd Quarter

*1 Honda Group Unit Sales is the total unit sales of completed products (motorcycles, ATVs, Side-by-Sides, automobiles, power products) of Honda, its consolidated subsidiaries and its affiliates and joint ventures accounted for using the equity method.

*2 Consolidated Unit Sales is the total unit sales of completed products (motorcycles, ATVs, Side-by-Sides, automobiles, power products) corresponding to consolidated sales revenue, which consists of unit sales of completed products of Honda and its consolidated subsidiaries.

*3 Certain sales of automobiles that are financed with residual value type auto loans by our Japanese finance subsidiaries and provided 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.

For Additional Information, please visit;
https://global.honda/investors/library/financialresult.html

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SOURCE Honda Motor Co., Ltd.