Hino Motors’s Financial Results for Fiscal Year 2020

Hino Motors’s fiscal year 2020 financial results showed a final deficit with consolidated sales of 1.5 trillion JPY, down 17.5% from the previous year, operating profit of 12.3 billion JPY, down 77.7% and net loss of 7.5 billion JPY. Sales and profits declined because global automobile sales fell 20.9% to 143,000 units due to the spread of the new coronavirus. Looking at the factors that influenced operating profit, the effects of sales dropped 86.7 billion JPY, but improvement in cost of sales (up 16 billion JPY) and change in cost structure (up 33.9 billion JPY) increased, resulting in an operating profit of 12.3 billion JPY.

Looking at unit sales in Japan, sales fell 10.6% to 60,000 units. Hino’s market share of light- medium- and heavy-duty trucks in Japan was 33.6% in fiscal year 2020, following the record high of 33.8% in fiscal year 2018, thanks to steady sales. Looking at overseas sales, sales fell sharply in Indonesia, down 55.2% to 12,000 units, and in the United States, down 49.2% to 7,152 units. In North America, the suspension of vehicle production at the West Virginia plant in the United States (West Virginia) and the Woodstock plant in Canada (Ontario) in December 2020 had a significant impact. The reason for the shutdown of the North American plants is that there were problems in the process of obtaining engine certification; however, production is scheduled to be resumed in October 2021. Hino posted an extraordinary loss of 14.6 billion JPY related to the suspension of production in North America which led to the final deficit.

Hino’s global vehicle sales in fiscal year 2021 are expected to increase 25.0% to 150,000 units, generating sales revenue of 1.3 trillion JPY and operating profit of 47 billion JPY.