Honda Q1 Profit Climbs, Lifts Full-year Forecast

(RTTNews) - Japanese automaker Honda Motor Co. Ltd. (HMC) Tuesday reported higher profit in its first quarter, as sales were benefited by strong results in automobile and motorcycle business operations, along with favorable foreign currency impact. The company also announced dividend, and lifted forecast for fiscal year ending March 31, 2015.

Consolidated net income attributable to the company for the first quarter totaled 146.5 billion yen or $1.445 billion, an increase of 19.6 percent from 122.50 billion yen last year. Basic net income per common share amounted to 81.29 yen or $0.80, an increase of 13.32 yen or $0.13 from the prior year.

Equity in income of affiliates climbed 21.5 percent from last year to $381 million. Consolidated operating income was 198.0 billion yen or $1.954 billion, an increase of 7.1 percent from last year, due primarily to continuing cost reduction efforts and an increase in sales volume and model mix.

Consolidated net sales and other operating revenue grew 5.4 percent to 2.988 trillion yen or $29.482 billion from 2.83 trillion yen last year.

In the motorcycle business operations, revenue went up 2.7 percent, with 3.6 percent increase in unit sales to 2,457 units. Consolidated unit sales grew 6.5 percent in Asia and 15.4 percent in Europe, while sales in Japan dropped 11.1 percent, and North America remained flat.

In automobile business operations, revenue increased 5.6 percent to $22.89 billion, with 4.3 percent increase in unit sales to 895 units. In the quarter, 44.6 percent increase in Japanese unit sales benefited Asia, while unit sales dropped in North America and were flat in Europe.

Power product business' revenues, meanwhile, fell 1.3 percent with a 5 percent drop in unit sales.

Further, the company said its Board of Directors, at its meeting held on July 29, resolved to make the quarterly dividend of 22 yen per share of common stock, the record date of which is June 30. The total expected annual dividend per share for the fiscal year 2015 is 88 yen per share.

Looking ahead for fiscal year ending March 31, 2015, Honda now expects attributable net income of 600 billion yen and 332.91 yen per basic share, operating income of 770.0 billion yen, on projected net sales and other operating revenue of 12.80 trillion yen.

The forecast represents 4.5 percent rise in net income, 2.6 percent growth in operating income and 8.1 percent increase in net sales from the prior year.

The company's previous forecast was for attributable net income of 595 billion yen or 330.14 yen per share, a growth of 3.6 percent from a year ago. Operating income was projected to grow 1.3 percent to 760 billion yen, and net sales and other operating revenue was projected to increase 7.7 percent to 12.75 trillion yen.

In Japan, Honda shares lost 30 yen or 0.84 percent today, and settled at 3,548 yen.