Honda Motor group net profit surged in the April-June quarter to JPY131.72bn, over four times more than the year before, boosted by brisk car sales in major global markets.

For the three-month period, the automaker reported an operating profit of JPY176.01bn, nearly eight times more than the previous year, on sales of JPY2.44 trillion, up 42.1%, indicating a recovery from the supply chain disruptions triggered by the earthquake and tsunami disaster in Japan last year, Kyodo News reported.

Honda sold 999,000 cars in the first quarter, up 59.8%, with North America accounting for 450,000 vehicles and Japan 185,000.

Referring to the robust sales in Japan amid a government subsidy programme for promoting eco-friendly vehicles, Honda executive vice president Tetsuo Iwamura told the Japanese news agency there would be a backlash when the subsidy runs out but added he is more concerned about the country's multiple taxes on automobiles.

"The basic problem the automakers face is the auto-related taxes... We ask the government to seriously consider abolishing those taxes," Iwamura said.

Honda did not revise its earnings outlook for the full business year ending next March, noting uncertainties regarding the course of the global economy amid European sovereign debt problems as well as the strong yen.

It forecast a group net profit of JPY470bn and an operating profit of JPY620bn on sales of JPY10.3 trillion for the full year.

Honda said it plans a dividend of JPY76 for the full year, up from JPY60 last year.

Show the press release

 

Summary of Consolidated Financial Results for the Fiscal 1st Quarter ended June 30, 2012

TOKYO, Japan, July 31, 2012 - Honda Motor Co., Ltd. announced its consolidated financial results for the fiscal first quarter ended June 30, 2012.

Consolidated net sales and other operating revenue for the fiscal first quarter (April 1, 2012 through June 30, 2012) amounted to 2,435.9 billion yen, an increase of 42.1% compared to the same period last year, primarily due to strong sales of new models in automobile business and an increase in revenue as a result of a recovery from the impact of the Great East Japan Earthquake.

Consolidated operating income for the fiscal first quarter amounted to 176.0 billion yen, approximately 7.8 times greater than the same period last year, primarily due to increased profit from higher revenue in automobile business, offsetting an increase in selling, general and administrative (SG&A) expenses and R&D expenses as well as the unfavorable currency effects.

Consolidated income before income taxes amounted to 194.7 billion yen, approximately 6.6 times greater than the same period last year, and consolidated net income attributable to Honda Motor Co., Ltd. amounted to 131.7 billion yen, approximately 4.1 times greater than the same period last year.

Despite some uncertainties in the economic climate and market trends as well as the fluctuation of currency exchange rates, previously announced forecasts for consolidated financial results for the current fiscal year ending March 31, 2013 will remain unchanged based on the results for this fiscal first quarter.

The quarterly dividend for the fiscal first quarter will be 19 yen per share, a 4 yen increase compared to the quarterly dividend for the same period last year. The total cash dividends to be paid for the fiscal year ending March 31, 2013 are planned to be 76 yen per share, an increase of 16 yen per share from the previous fiscal year.

Consolidated Financial Results for the Fiscal 1st Quarter

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Forecasts for the Fiscal Year ending March 31, 2013 (FY13)

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*1
Honda Group Unit Sales is the total unit sales of completed products of Honda, its consolidated subsidiaries and its affiliates accounted for under the equity method.
*2
Consolidated Unit Sales is the total unit sales of completed products corresponding to consolidated net sales, which consists of unit sales of completed products of Honda and its consolidated subsidiaries.
*3
Consolidated Unit Sales of ATV included in Motorcycle business for the three months ended June 30, 2011 and 2012 are 26 thousand units and 29 thousand units, respectively.
*4
Certain sales of automobiles that are financed with residual value type auto loans by our Japanese finance subsidiaries are accounted for as operating leases in conformity with U.S. generally accepted accounting principles and are not included in consolidated net sales to the external customers in our automobile business. As a result, they are not included in Consolidated Unit Sales, but are included in Honda Group Unit Sales of our automobile business.

 

Original source: http://world.honda.com/news/2012/c120731Financial-Summary/index.html