Honda Announces Strong Third Quarter

Honda Motor Co., Ltd., has announced its consolidated financial results for the fiscal third quarter which ended December 31, 2013.

Honda’s consolidated net income attributable to Honda Motor Co., Ltd. for the fiscal third quarter ended December 31, 2012 totaled $894 million, an increase of 62.5% from the same period last year. Basic net income attributable to Honda Motor Co., Ltd. per common share for the quarter amounted to $0.50, an increase of $0.19 for the corresponding period last year.

Consolidated net sales and other operating revenue (herein referred to as “revenue”) for the quarter amounted to $28,018 million, an increase of 24.9% from the same period last year, due primarily to increased revenue in automobile business operations, as production recovered from the impact of the Thai flood.

Consolidated operating income for the quarter amounted to $1.524 million, an increase of 197.8% from the same period last year, due primarily to an increase in sales volume and model mix and cost reduction, despite increased SG&A expenses and R&D expenses.

Consolidated income before income taxes and equity in income of affiliates for the quarter totaled $1.037 million, an increase of 53.5% from the same period last year.

Motorcycle Business

With respect to Honda’s sales for the fiscal third quarter by business segment, in motorcycle business operation, revenue from sales to external customers increased 1.7%, to $3.555 million from the same period last year, due mainly to increase of the consolidated unit sales, despite of the unfavorable foreign currency translation effects. Operating income totaled $263 million, a decrease of 11.8% from the same period last year, due primarily to the unfavorable foreign currency effects, despite an increase in cost reduction.

In North America, revenue increased by 26.3%, to $14,390 million from the same period last year due mainly to increased revenue in the automobile business operation and favorable foreign currency translation effects. Operating income totaled JPY 70.8 billion (USD 819 million), a decrease of 5.3% from the same period last year due mainly to increased SG&A expenses, despite an increase in sales volume and
model mix. 

By Tom Roderick