Honda Motor said fiscal third quarter (to 31 December, 2018) sales revenue of JPY3,973.6bn was essentially flat due mainly to an increase in motorcycle unit sales in countries such as Vietnam and an increase in sales revenue from financial services business. This was offset by unfavourable foreign currency effects.
Consolidated operating profit fell 40.2% to JPY170.1bn due primarily to changes in sales volume and model mix, an increase in selling, general and administrative (SG&A) expenses and unfavourable foreign currency effects. This was despite cost reduction efforts.
Consolidated profit fell 70.5% to JPY168.2bn due primarily to the reverse effect from the impact of a reduction of corporate tax rates in the US (JPY346.1bn) booked in the same period last year.
Consolidated sales revenue for the fiscal nine months (1 April, 2018 to 31 December, 2018) rose 3.4% to JPY11,839.5bn due to an increase in sales revenue from all businesses. Consolidated operating profit fell 3.2% to to JPY684bn due to an increase in SG&A expenses and unfavourable foreign currency effects. This was despite cost reduction efforts and the loss related to the settlement of multidistrict class action litigation recorded in the same period last year.
Consolidated profit before income taxes fell 6.1% to to JPY868.2bn. Consolidated profit fell 34.5% to to JPY623.3bn due primarily to the reverse effect from the impact of a reduction of corporate tax rates in the US booked last year.
For the current fiscal year (to 31 March, 2019, the forecast for consolidated sales revenue was revised upward by JPY50bn to JPY15.85 trillion yen, and the forecast for profit for the current fiscal year attributable to owners of the parent was revised upward by 20.0bn yen to 695.0bn yen. The forecast for operating profit remains unchanged from the previous forecast of JPY790bn.
The quarterly dividend for the fiscal third quarter will be JPY28 per share (an increase of JPY3), and total dividends to be paid for the fiscal year are expected to be JPY111 (an increase of JPY11).