Honda Motor Q2 Profit Rises; Revenue Down 9.9%; Revises Fiscal Year Forecast

(RTTNews) - Honda Motor Co., Ltd. (HMC) reported that its second-quarter profit attributable to owners of the parent increased year-over-year to 177.0 billion yen or 98.26 yen per share from 127.7 billion yen or 70.88 yen per share. Operating profit increased by 38.4% to 228.0 billion yen due primarily to cost reduction efforts, a decline in SG&A expenses, including quality related expenses, as well as the impact of pension accounting treatment, despite negative foreign currency effects.

Second-quarter sales revenue decreased by 9.9% to 3.26 trillion yen primarily due to negative foreign currency translation impact, despite increases in automobile, financial services, and motorcycle business operations. Motorcycle unit sales were up 11% to 3.04 million units, while automobile unit sales were up 0.1% from last year.

Honda Motor announced the company now expects profit attributable to owners of the parent of 415 billion yen or 230.26 yen per basic share for the fiscal year ending March 31, 2017, up from previous guidance of 390 billion yen or 216.39 yen per basic share. Due mainly to continuing cost reduction efforts, the impact of pension accounting treatment, despite unfavorable foreign currency effects, the company upwardly revised its forecast for operating profit, profit before income taxes, and profit for the year attributable to owners of the parent for the fiscal year.

Honda Motor now anticipates fiscal year sales revenue of 13.40 trillion yen, down from previous guidance of 13.75 trillion yen. Due mainly to unfavorable foreign currency translation effects, the company downwardly revised its forecast for sales revenue of the fiscal year.