Honda's (HMC) February Sales Volume Climbs 4.2% Y/Y In US

Honda Motor Co., Ltd. (NYSE:HMC) reported total unit sales of 120,006 in the United States, in February 2020. This marks a year-over-year increase of 4.2%, with trucks and passenger cars gaining 6% and 2%, respectively.

Notably, the company’s Honda and Acura divisions reported record sales volume in during the reported month. The Honda division recorded sales volume of 107,742 vehicles, indicating a year-over-year rise of 4.7%. Meanwhile, the Acura division registered unit sales of 12,264 vehicles, reflecting an increase of 0.4% compared with the year-ago levels.

The Honda division’s growth has been primarily aided by record sales increase of 14.4% of HR-V model, which was backed by a 7.5% rise of CR-V sales. The Ridgeline and Passport sales jumped 46.8% and 68.2%, respectively, marking their best ever February. Furthermore, while Honda Accord sales declined 10.1%, Insight and Civic sales increased 1.6% and 11.5%, respectively, in the month.

All things considered, the Honda division registered a rise in total car and truck sales by 2.1% and 6.9%, respectively. Lastly, the division’s light truck sales were up 8.3%, recording its best-ever sales in the month.

With respect to the Acura division, RDX and MDX models registered record truck sales of 4,982 and 3,843 units, respectively this February. ILX sales climbed 3.4%, indicating its best ever February, while TLX jumped 2% on sales of 2,263 vehicles. On the whole, the Acura division recorded total car and truck sales growth of 0.7% and 0.3%, respectively.

Honda’s healthy balance sheet and improving cash flows, along with investor-friendly moves, are other positives. With $22.2 billion of cash in hand, along with a modest leverage of 32.3%, the firm can tap onto growth opportunities. Bringing in pleasant news for investors, the firm recently announced a quarterly dividend of ¥28 per share. For fiscal 2020, total annual dividend payment per share is expected to be ¥112.

Honda — peers of which include Nissan (NSANY), Toyota (TM) and Volkswagen (DE:VOWG_p) (VWAGY) — expects revenues of ¥15.15 trillion at the end of fiscal 2020, indicating a 4.6% year-over-year decline. However, the updated projection compares favorably with the prior guidance of ¥15 trillion. Further, operating income is now projected at ¥730 billion compared with the previous forecast of ¥690 billion. The estimated figure suggests 0.5% year-over-year growth. Operating margin is now anticipated to be 4.8%, up from the prior projection of 4.6%. Earnings per share at the end of fiscal 2020 are expected to be ¥339.64, up from the prior view of ¥329.64.

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