Honda Group Q3 Profit Decreases; Sales Revenue Rise 3.4%; Updates Guidance

(RTTNews) - Honda Motor Co., Ltd. (HMC) reported that its third-quarter profit attributable to owners of the parent decreased year-on-year to 124.1 billion yen from 152.3 billion yen. Earnings per share was 68.91 yen compared to 84.56 yen.

Operating profit decreased to 163.0 billion yen from 210.0 billion, prior year. The company said the operating profit decreased by 22.3% due primarily to increased SG&A expenses, including quality related costs, and negative foreign currency effects despite an increase in sales volume and model mix and continuing cost reduction efforts.

Sales revenue increased to 3.62 trillion yen from 3.50 trillion yen, last year. Sales revenue increased 3.4% primarily due to an increase in automobile and financial services business operations.

For fiscal 2016, the company expects sales revenue of 14.55 trillion yen, down 50.0 billion yen from prior forecast. The company continues to expect net income to owners of parent of 525.0 billion yen or 291.30 yen per share for fiscal 2016.