Honda’s 2Q Fiscal Year Earnings Results

Sales are up, earnings are down slightly, and the forecast shows slowly declining sales in China.

Wayne Gerdes - CleanMPG - Oct. 28, 2014



Honda released its financial results for the “fiscal second quarter| and the fiscal first half ended September 30, 2014.



Operating income for the fiscal second quarter (July 1, 2014 through September 30, 2014) amounted to $1.46 billion USD, a decrease of 4.1 percent compared to the same period a year ago. Honda stated the profit reduction was based on a decrease in North American and Japanese automobile sales due to ever increasing competition. This was despite profit-increasing factors including the introduction of new automobile products in Asia and the positive effect of global cost reduction efforts.



Honda’s global sales for the quarter reached 1.071 million vehicles, up 2.3 percent from the 1.047 million sold in the same quarter of 2013.



Consolidated income before income taxes for the fiscal second quarter amounted to $1.6 billion USD, an increase of 8.6 percent compared to the same period last year.



Consolidated net income for the fiscal second quarter amounted to $1.26 billion USD, an increase of 17.9 percent compared to the same period last year.



Consolidated operating income for the fiscal first half (April 1, 2014 through September 30, 2014) amounted to $3.23 billion USD, an increase of 1.7 percent compared to the same period last year, and consolidated net income for the fiscal first half amounted to $2.57 billion USD, an increase of 18.8 percent compared to the same period last year.



Reflecting the fiscal first half results as well as the forecasted favorable effect of yen depreciation and the forecasted decline in sales in Japan and China due to the difficult business environment, Honda made some revisions to the previously announced forecasts for the current fiscal year (April 1, 2014 through March 31, 2015). The previously announced forecast for consolidated net sales and other operating revenue was revised downward from $128.0 billion USD to $113.5 billion USD, whereas the forecast for consolidated operating income will remain unchanged from the previous $6.86 billion USD. The forecast for consolidated net income for the current fiscal year was also revised downward from the previous $5.34 billion USD to $5.03 billion USD.



The quarterly dividend for the fiscal second quarter will be $0.20 USD per share, a 10 percent increase compared to the quarterly dividend for the same period last year. The total cash dividend to be paid for the fiscal year ending March 31, 2015 is expected to be $0.78 USD per share, an increase of 7.3 percent from the previous fiscal year.



All figures above were converted using today’s 1 Japanese Yen = 0.0089 US Dollar conversion rate.

Honda’s 2Q Fiscal Year Earnings Results