HNDAF - Honda Motor Co. Ltd. (HMC) Q3 2024 Earnings Call Transcript
2024-02-09 15:41:11 ET
Honda Motor Co., Ltd., (HMC)
Q3 2024 Results Conference Call
February 08, 2024 01:15 AM ET
Company Participants
Eiji Fujimura - Executive Officer, Chief Financial Officer
Masao Kawaguchi - Operating Executive Head of Accounting and Finance
Presentation
Unidentified Company Representative
Thank you for taking time today. I would now like to begin Honda FY 2024 Third Quarter Financial Results Press Conference. First, an introduction of Executives on stage. Executive Officer, CFO, Eiji Fujimura.
Eiji Fujimura
Thank you. I am Eiji Fujimura.
Unidentified Company Representative
Operating Executive Head of Accounting and Finance, Masao Kawaguchi.
Masao Kawaguchi
Thank you. I'm Kawaguchi.
Unidentified Company Representative
First, Fujimura will present the FY 2024 Third Quarter Financial Results and FY '24 financial forecast, followed by Kawaguchi's explanation on the details of both. With no further ado, Mr. Fujimura, please.
Eiji Fujimura
To start with, first of all, I would like to extend my deepest sympathy to the victims of the very worst Reiwa 6 Noto Peninsula Earthquakes occurred on January 1, as well as to their families, and I wish for a quick recovery and the reconstruction, restoration of the affected areas. I will explain the financial results of the third quarter and forecast of the full year of the FY 2024. Starting with the summary of the results. With regards to the cumulative unit sales into the third quarter of FY 2024, the unit sales of the motorcycles businesses increased mainly in Brazil and Europe, achieving the highest-ever operating profits and operating margins.
In the automobile businesses, despite the impact of the warranty expenses, the volume went up mainly in North America, significantly raising the operating profits year-on-year. As a result, operating profits of the whole company marked JPY 1,076.3 billion with the operating profit margin being 7.2%. Regarding the forecast of FY 2024, although some challenging market environment exists in Asia, reflecting additional strength of the earnings structures and the favorable currency impacts, we will revise the previous forecast. For the shareholder returns, in order to improve capital efficiency, we made a decision of our share buybacks in the board of directors meeting today for the amount of JYP 50 billion.
Together with the already acquired JYP 200 billion, this term, it will add up to JYP 250 billion in total. Further to the share buybacks, we resolved the cancellation of the treasury stocks as many as 154 million shares. Honda will accelerate our efforts to improve capital efficiencies in order to enhance corporate values. Let me explain the current situation of automobile businesses in the main markets.
Due to the solid demand in the United States and the production recovery in Japan leading to the incremental unit sales, the entire unit sales increased year-on-year. In terms of the sales forecast of the FY 2024, we are expecting the sales drop in Thailand and Indonesia. However, we expect the sales unit increase in China. There's no change of the previous forecast....
Honda Motor Co., Ltd., (HMC) Q3 2024 Earnings Call Transcript