Honda Q4 Profit Surges On Higher Volume; Sees Growth In FY15

(RTTNews) - Japanese automaker Honda Motor Co. Ltd. (HMC) said Friday that its fourth -quarter profit more than doubled from last year with significant revenue growth in automobile and motorcycle business units as well as favorable currency impact. Further, the company announced higher dividend. Honda also sees higher earnings and revenue for fiscal 2015.

For the fourth quarter, consolidated net income attributable to the company advanced 125.1 percent to 170.51 billion yen, or $1.66 billion, from 75.75 billion yen reported last year. Basic earnings per share was 94.61 yen or $0.92, sharply higher than the year-ago quarter's 42.03 yen.

Consolidated operating income grew 21.5 percent year-over-year to 165.29 billion yen or $1.61 billion, driven by higher sales volume, continuing cost reduction efforts, as well as favorable foreign currency effects.

In the quarter, consolidated net sales and other operating revenue grew 12.8 percent to 3.10 trillion yen or $30.09 billion, from last year's 2.74 trillion yen.

In the motorcycle business operations, revenue increased 19.5 percent to $4.36 billion. Consolidated unit sales increased 9.6 percent to 2.73 million units with double-digit growth in both Japan and North America.

Revenues in automobile business operations improved 11.3 percent to $23.11 billion due mainly to favorable currency impacts. Consolidated unit sales increased 3.4 percent to 933 thousand units with a 40.7 percent increase in Japan.

On a geographical basis, revenue from domestic and export sales grew 4.7 percent year-over-year to $10.78 billion, mainly due to increased revenue in automobile and motorcycle business operations.

In North America, revenue rose 4.7 percent on currency benefits, despite lower revenue in automobile business operations.

European revenue climbed 18 percent on currency impacts, while Asian revenue growth of 12.4 percent reflected currency benefits and higher revenue in motorcycle and automobile operations. In Other regions, which includes South America, the Middle/Near East, Africa and Oceania, revenue increased 16.3 percent.

Further, Honda said it plans to distribute year-end cash dividends of 22 yen per share for the year 2014. As a result, total cash dividends for the year would be 82 yen per share, an increase of 6 yen per share from last year.

The company also expects to distribute quarterly cash dividends of 22 yen per share for each quarter for the year 2015. As a result, total cash dividends for the year would be 88 yen per share.

Looking ahead for fiscal year ending March 31, 2015, Honda expects 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 is projected to grow 1.3 percent to 760 billion yen, and net sales and other operating revenue are projected to increase 7.7 percent to 12.75 trillion yen.

In Japan, Honda shares gained 35 yen or 1.02 percent, and settled on today at 3,470 yen.