Honda Motor Co., Ltd. (NYSE: HMC) saw its stock decline Tuesday on Wall Street, having announced its consolidated financial results for the fiscal fourth quarter of 2020.
In its news release, the auto maker acknowledged that the "spread of COVID-19 pandemic has stagnated both consumer spending and the economic activities of businesses on a global basis, and future prospects remain uncertain at this moment."
The effect of the pandemic is reflected in the numbers.
Honda’s consolidated sales revenue for the fiscal fourth quarter amounted to 3,458.0 billion yen, a decrease of 14.6% compared to the same period last year, due primarily to a decrease in sales revenue from automobile business. This was despite an increase in sales revenue from financial services business and other factors.
Consolidated operating profit for the fiscal fourth quarter amounted to - 5.6 billion yen (operating loss), a decrease of 47.9 billion yen compared to the same period last year, due primarily to a decrease in profit related to changes in sales revenue and model mix.
Consolidated operating profit for the fiscal fourth quarter excluding currency effects, one-time issues and the impact of the spread of COVID-19 pandemic can be estimated to be a year-on-year increase of 32.4 billion yen.
One-time issues include the impact of changes being made to automobile production operations.
The impact of the spread of COVID-19 pandemic includes a decrease in unit sales, an increase in provision for sales incentives and an increase in provision for credit losses for financial services business.
HMC shares fell 86 cents, or 3.6%, to $23.11
Related Stories
