Suzuki says profits fell for first time in 6 years, sees 2015 rebound
The company's operating profit dropped 4.4% to $1.50 billion in the year ended March
Tokyo: Japan’s Suzuki Motor Corp said its annual operating profit fell for the first time in six years, missing its own target, as weak demand at home and Southeast Asia offset hefty currency gains and robust earnings in India, its biggest market.
The country’s fourth-largest automaker said on Monday operating profit dropped 4.4% to ¥179.42 billion ($1.50 billion) in the year ended March, despite a ¥22.2 billion currency gain as the weaker yen boosted the value of overseas sales.
The result was below both the small car specialist’s own guidance that operating profit would edge up 0.1% to ¥188 billion, and an average estimate of ¥189.55 billion in a Thomson Reuters survey of 23 analysts.
Still, for the current business year, Suzuki forecast a 5.9% rise in operating profit to ¥190 billion, with higher vehicle sales in India and Europe making up for sinking demand in Japan. Analysts on average expect operating profit of ¥214.94 billion.
Suzuki expects global sales to rise 3.9% to 2.98 million vehicles this business year, despite an expected 14.7% slump in Japan, its second-biggest market after India.
In India, Suzuki expects sales to rise 10% this business year. Subsidiary Maruti Suzuki India Ltd said last month it expects to push further into rural areas to help expand its market share. Reuters
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