Honda Q3 Profit Down; Trims Earnings Outlook, Lifts Sales View

(RTTNews) - Japanese automaker Honda Motor Co. Ltd. (HMC) reported Friday lower profit in its third quarter, even as net sales were benefited by strong sales of Motorcycles with improved performance in India and Indonesia. Further, the company lowered its fiscal 2015 forecast for profit and sales volumes, while lifting net sales view.

For the third quarter, net income decreased 15.1 percent to 136.5 billion yen from 160.7 billion yen in the previous year. Earnings per share were 75.75 yen, compared to 89.18 yen last year.

Operating income declined 22.5 percent to 177.2 billion yen, mostly due to a decrease in income associated with changes in sales volume and increased expenses.

Net sales, however, increased 8.9 percent to 3.29 trillion yen from 3.02 trillion yen in the previous year, mainly due to a rise in motorcycle unit sales as well as the positive impact of foreign exchange effects.

In the quarter, sales from Motorcycles business grew 6.3 percent, while that of automobiles business declined 2.2 percent from last year.

Honda group's Motorcycles volume sales grew 4.3 percent year-over-year to 4.43 million units, with growth mainly in India and Indonesia. Meanwhile, sales of Automobiles fell 5 percent to 1.03 million units with weak sales in Japan and China due to difficult market conditions. Sales of Power Products also fell 1.2 percent.

Third-quarter dividend is 22 yen per share, compared to 20 yen per share last year.

Looking ahead for fiscal 2015, Honda now expects net earnings of 545 billion yen or 302.39 yen per share, representing a decline of 20 billion yen from the previous forecast. The new forecast also reflects 5.1 percent decline from last year.

Operating income is now projected to be 720 billion yen, down 50 billion yen from its previous view, and net sales is now seen at 12.9 trillion yen, better by 150 billion yen than the previous outlook.

The new guidance for operating income represents a 4 percent decline from last year, but sales are projected to grow 8.9 percent.

Further, the company trimmed its fiscal 2015 forecast for unit sales in its three segments. Motorcycles segment now expects to sell 17.82 million units in the year, down 0.8 percent from the previous estimate, and automobiles projects volume sales of 4.45 million units, down 3.7 percent from earlier outlook. Power products' volume forecast is 1.1 percent lower than what was projected earlier.

In Japan, Honda shares closed Today's trading at 3,581 yen, down 0.78 percent.