The Motorcycle and Life Creation units (Power Product business has been renamed Life Creation business from April 1, 2019) declined 8.1% and 4.5% respectively, partially offset by a marginal 1.2% increase in the Automobile segment.
Automobile sales were mainly pulled down by the weakness in North America, where it sold 23% fewer cars compared to last year. The big fall in the Motorcycle division was led by weakness in the Indian market.
Despite its cost optimization initiatives, operating profit fell 15.7% to JPY 252.4 billion (approx. $2.36 billion) due to SG&A expenses and lower revenues.
On a per-share basis, the Civic-maker reported earnings of JPY 97.92 (approx. $0.92) in the first quarter.
READ: What Tesla executives discussed during Q2 2019 earnings call
HMC shares ended their last trading session down 0.24%. The stock has declined 6% so far this year.
Outlook
For the fiscal full year, the company expects a 1.5% decrease
in sales revenue to JPY 15,650 ($146.4 billion), while
EPS is projected to be JPY366.57 (3.43).
Operating profit for this period is forecast to increase 6%.