Hello Guest

NEWS: Suzuki, Subaru post higher first quarter profits

  • 0 Replies
  • 999 Views

0 Members and 1 Guest are viewing this topic.

*

Offline ebewley

  • 6566
  • 66
  • Gender: Male
  • ZUKIWORLD Online, Editor
    • ZUKIWORLD online
NEWS: Suzuki, Subaru post higher first quarter profits
« on: July 31, 2006, 09:54:09 AM »
Suzuki, Subaru post higher first quarter profits
Reuters / July 31, 2006 - 8:00 am

 
TOKYO -- Suzuki Motor Corp. and Subaru-maker Fuji Heavy Industries Ltd. reported improved quarterly earnings on Monday as expanded vehicle sales and a weaker yen offset higher commodities costs, and they kept their forecasts for the full year unchanged.

Suzuki, Japan's top maker of minivehicles and the world's third-biggest motorcycle manufacturer, has been a major beneficiary of the global shift in demand to smaller, fuel-efficient cars as gasoline prices hover near record highs.

The popularity of 660cc minivehicles in Japan and heady growth in India, which accounts for a quarter of its global sales, has helped Suzuki weather a sharp contraction in the Indonesian car market and increased spending to add more output capacity around the world.

In contrast, high pump prices have hit Fuji Heavy, which sells bigger, all-wheel-drive cars such as the Legacy and B9 Tribeca models that are especially popular in the U.S. snowbelt regions and among car enthusiasts.

"There's a shift in the (North American) market towards smaller cars right now, so with our product line-up the situation is pretty tough," a Fuji Heavy spokesman told reporters.

Fuji Heavy's operating profit for the first quarter ended June 30 was $94 million (10.77 billion yen), up from 1.15 billion yen in the year-earlier period. Net profit came to $40.3 million (4.6 billion yen), compared with a loss of 1.18 billion yen.

Revenue rose 9.9 percent to $2.88 billion (329.53 billion yen) as a sharp rise in sales of the Impreza and Forester models in Europe, as well as stronger shipments to other overseas markets, offset a decline in domestic sales.

Global vehicle sales grew 3.2 percent to 124,000 units.

The spokesman added that persistently high fuel prices meant more spending on incentives to move the metal in the United States. Subaru expects to spend an average $1,800 per vehicle this calendar year, up $300 from 2005, assuming it can substantially pull back outlays in the third and fourth quarters.

It kept its full-year operating profit forecast at $437.7 million (50 billion yen) and net profit at $262.6 million (30 billion yen), but stressed that competition was set to grow tougher at home and in North America.

SUZUKI CRUISES

Suzuki, meanwhile, is scrambling to add capacity at its Hungarian and Indian factories as it races to catch up with runaway demand for its SX4 crossover and Swift hatchback global models.

Its operating profit for the first quarter jumped 18 percent to $296.5 million (33.95 billion yen), roughly in line with a median forecast of 33 billion yen in a survey of five brokerages by Reuters Estimates.

Rival minivehicle maker Daihatsu Motor Co. last week also posted an 8.3 percent rise in operating profit citing expanded vehicle sales at home and to parent Toyota Motor Corp.

Suzuki's net profit and sales both rose 20 percent, to $177.3 million (20.26 billion yen) and $6.68 billion (763.84 billion yen), also benefiting from steady sales of large motorcycles in the United States and Europe. Its global car sales expanded 8.4 percent to 533,000 units.

Driven by the popularity of the Swift, as well as the Zen and Alto cars, Indian unit Maruti Udyog Ltd., in which Suzuki holds a 54.2 percent stake, last week booked a consensus-beating 66 percent jump in quarterly net profit.

For the year to March 2007, Suzuki maintained its cautious forecasts for operating profit of $1.01 billion (115 billion yen) and net profit of $577.6 million (66 billion yen).
 
Eric L. Bewley                               
Editor, ZUKIWORLD Online                   

Suzuki 4x4 Owners Association - Please Join  The ZUKIWORLD ORDER Today!
About ZUKIWORLD Online: We are an enthusiast web site dedicated to the promotion of the Suzuki Automobile as the best and most capable vehicle on the planet. We offer product reviews, Tech tips, DIY, Travel and Adventure, Forum, Technical information, Life Style, and so much more!