Honda Motor posts 7.9% increase in operating profit for first half of fiscal year

Honda Motor Co Ltd announced its consolidated financial results for the fiscal first half ended September 30, 2015, posting an increase of 7.9% in the operating profit of the company.

The consolidated operating profit for the fiscal first half (April 1, 2015 through September 30, 2015) amounted to ¥404.1 billion (approx Rs 21,000 crore), an increase of 7.9% compared to the same period last year, due to profit-increasing factors such as strong automobile sales in North America and Asia, positive effects of the all-new HR-V introduction in each region, as well as cost reduction efforts. This is despite profit-reducing factors such as an increase in selling, general and administrative (SG&A) expenses that include quality-related expenses. The consolidated profit for the fiscal first half attributable to owners of the parent amounted to ¥313.7 billion (approx Rs 16,300 crore), an increase of 14% compared to the same period last year.

Reflecting the currency effects, the previously announced forecast for consolidated sales revenue for the current fiscal year (April 1, 2015 through March 31, 2016) was revised upward by ¥100 billion to ¥14.6 trillion (approx Rs 5,200 crore to Rs 7,592 billion). Reflecting an increase in automobile unit sales in the North America and Asia, and the positive effect of cost-reduction efforts, the forecast for consolidated operating profit for the current fiscal year will remain unchanged from the previous ¥685 billion (Rs 35,620 crore). This is despite a decline in automobile unit sales in Japan and an increase in quality-related expenses. The forecasts for consolidated profit before income taxes and profit for the current fiscal year attributable to owners of the parent will remain unchanged from the forecasts announced previously.