US Drivers Sue Takata Corporation, Honda Motor, BMW, and Other Affected Brands over Faulty Air Bags
Oct 30 14
Takata Corporation, Honda Motor, BMW, and other affected brands that install the company's airbags are being sued by US drivers who claim they were duped into buying unsafe vehicles following the recall of almost 8 million cars from 10 automakers. Sixteen buyers or lessees of Honda Motor, BMW, and other affected brands have filed a complaint in federal court in Florida seeking to represent a nationwide class of consumers. They allege they were harmed by buying vehicles that, because of potentially dangerous air bags, weren't as safe as they were made to believe. Air bags made by Takata are linked to at least four deaths and more than 30 injuries in the US after the safety devices deployed with too much force, spraying metal shrapnel at occupants. Honda alone has recalled 6 million vehicles globally since 2008 because of the Takata air-bag flaw.
Honda Motor Co., Ltd., Board Meeting, Oct 28, 2014
Oct 28 14
Honda Motor Co., Ltd., Board Meeting, Oct 28, 2014. Agenda: To resolve to make the quarterly dividend JPY 22 per share of common stock.
Honda Motor Co., Ltd. Announces Consolidated Earnings Results for the Second Quarter and Six Months Ended September 30, 2014; Revises Consolidated and Un-Consolidated Earnings Guidance for the Full Year Ending March 31, 2015; Approves Second Quarterly Dividend
Oct 28 14
Honda Motor Co., Ltd. announced consolidated earnings results for the second quarter and six months ended September 30, 2014. For the quarter, the company reported net profit surged nearly 18%. The company reported a JPY 141.8 billion (USD 1.3 billion) profit for the fiscal second quarter. Basic net income attributable to the company per common share amounted to JPY 78.73 (USD 0.72), an increase of JPY 11.94 (USD 0.11) from JPY 66.79 for the corresponding period last year. Consolidated net sales and other operating revenue for the quarter amounted to JPY 3,014.7 billion (USD 27,545 million), an increase of 4.3% from the same period last year, due primarily to increased revenue in motorcycle and automobile business operations, as well as favorable foreign currency translation effects. Consolidated operating income for the quarter amounted to JPY 164.4 billion (USD 1,502 million), a decrease of 4.1% from the same period last year, due primarily to a decrease in sales volume and model mix as well as increased R&D expenses, despite continuing cost reduction efforts and favorable foreign currency effects. Consolidated income before income taxes and equity in income of affiliates for the quarter totaled JPY 179.8 billion (USD 1,643 million), an increase of 8.6% from the same period last year.
For the six months, the company reported net profit jumped almost 19%. The company posted a JPY 288.41 billion (USD 2.67 billion) net profit through September, up from JPY 242.87 billion a year earlier, while sales rose to JPY 6.0 trillion from JPY 5.72 trillion. The operating profit rose 1.7% year on year after cost-cutting efforts despite higher expenses for sales, general management and research and development. Operating income was JPY 362,485 million compared to JPY 356,414 million for the same period a year ago. Income before income taxes and equity in income of affiliates was JPY 378,678 million compared to JPY 337,622 million for the same period a year ago. Basic net income attributable to the company per common share was JPY 160.02 compared to JPY 134.75 for the same period a year ago. Net cash provided by operating activities was JPY 657,364 million compared to JPY 671,502 million for the same period a year ago. Capital expenditure was JPY 350,158 million compared to JPY 355,990 million for the same period a year ago. Purchases of operating lease assets was JPY 723,222 million compared to JPY 582,206 million for the same period a year ago.
For the full year ending March 31, 2015, on consolidated basis, the company cuts its net profit estimate to JPY 565.0 billion from an earlier JPY 600 billion forecast, citing a tougher business environment in key Asian markets, including China. The company also slightly revised down its sales outlook to JPY 12.75 trillion from JPY 12.8 trillion it had estimated in July, while maintaining its operating profit forecast at JPY 770 billion. The company currently expects to report basic net income attributable to the company per common share of JPY 313.49 from previous forecasted value JPY 332.91. The company expects income before income taxes and equity in income of affiliates of JPY 765,000 million compared to previous forecasted value of JPY 755,000 million.
For the full year, on unconsolidated basis, the company expects to report net sales of JPY 3,500,000,000 million, operating income of JPY 120,000 million, ordinary income of JPY 355,000 million and net income of JPY 285,000 million or JPY 158.13 per share compared to previous forecast of net sales of JPY 3,640,000,000 million, operating income of JPY 140,000 million, ordinary income of JPY 355,000 million and net income of JPY 280,000 million or JPY 155.36 per share. The company announced that due mainly to decreased unit sales caused by changes in the business environment surrounding the company, the company has downwardly revised its forecasts for unconsolidated net sales and operating income and on the other hand, due mainly to changes in the business of its affiliated companies in Japan, the company has upwardly revised its forecast for net income of the fiscal year ending March 31, 2015. The company slashed its domestic vehicle sales projection for the business year through next March by 100,000 units to 930,000 units, following a spate of recalls. The downward revision is also attributed to the slow recovery of demand following April's consumption tax hike, as well as increasing competition in the minivehicle market.
The company approved the quarterly dividend and provided dividend guidance for the fiscal year ending March 31, 2015. The board of directors of the company at its meeting held on October 28, 2014, resolved to make the quarterly dividend JPY 22 per share of common stock, the record date of which is September 30, 2014.