Benzinga | Nov 5, 2021 09:41AM EDT

Honda Motor Registers 6.8% Revenue Decline In Q2 Due To Supply Chain Woes, Cuts FY22 Outlook

* Honda Motor Co Ltd (NYSE:HMC) reported a second-quarter FY22 sales decline of 6.8% year-on-year, to ?3.4 trillion ($30.94 billion), missing the analyst consensus of $31.28 billion.

* Motorcycle business revenue rose 2.5% Y/Y to ?505.5 billion and Automobile revenue decreased 11.5% to ?2.1 trillion.

* The operating margin was 5.8%, and operating income for the quarter declined 29.7% to ?198.9 billion.

* Q2 profit attributable to owners of the parent decreased 30.8% to ?166.60 billion.

* The interim dividend was ?55 per share, and the forecast for total dividends to be paid for FY22 is ?110 per share.

* Honda expects the external business environment to remain challenging during the fiscal year due primarily to the resurgence of COVID-19, the supply shortage of certain parts, including semiconductors, and an increase in raw material costs.

* Outlook: Honda expects FY22 sales revenue of ?14.60 trillion (prior view ?15.45 trillion).

* The company sees attributable profit for FY22 of ?555 billion (prior view ?670 billion).

* Price Action: HMC shares closed higher by 1.52% at $30.74 on Thursday.