Honda Motor Co., Ltd. (NYSE:HMC) Q3 2024 Earnings Conference Call November 6, 2024 3:00 AM ET

Company Participants

Shinji Aoyama - Director & EVP, Representative Executive Officer
Eiji Fujimura - CFO

Conference Call Participants

Operator

Thank you very much indeed for your participation today. I'd like to now make a start of the financial results, the press conference for the second quarter of FY’2025. Let me introduce the participants today, Director, Executive Vice President, and the Representative Executive Officer, Mr. Shinji Aoyama; Director and Managing Executive Officer, CFO, Mr. Eiji Fujimura. Mr. Aoyama is going to present the outline of the results of the second quarter of FY’2025 and the full year outlook of the FY’2025, followed by Mr. Fujimura to present details of the financial results.

Mr. Aoyama, the floor is yours.

Shinji Aoyama

Thank you very much for your understanding of our business activities as usual. Let me present our second quarter results of FY’2025. Starting with the highlights. Operating profit of the first half of the FY’2025 was 742.6 billion yen with operating profit margin at 6.2%.

The unit sales on a consolidated automobile businesses enjoyed a steady sales of ICE and HEV models in North America, as well as the full-fledged start of the EV sales sells. We had additional sales of the 64,000 units year on year. Total units sales across the group declined by 155,000 units due to the reduction of the unit in China. Regarding motorcycle businesses, we had a favorable unit sales globally and had achieved the cumulative sales of two quarters reaching 10 million units.

Operating cash flow after R&D adjustment was 1.2851 trillion yen, the same level last year. Regarding the full year consolidated forecast of FY’2025, despite the impact by strengthened incentives for EV sales in North America with the recovery of motorcycle businesses, we will keep the same forecast from the previous guidance. That is a 1.42 trillion yen as for the current profits due to the sales decline in China, a profit decline of domestic affiliates causing less investment or profits based on the equity methods, we will change the previous forecast down to 950 billion yen, less by 50 billion. With regard to the shareholders returns, we made a decision in the board of directors meeting today of interim dividend of 34 yen, and annual dividend of 68 yen, which will be maintained from the same amount from the previous forecast.