Suzuki Motor Corporation survived the ongoing severe market conditions to keep in the black also in the first half (April through September) of the 2009 fiscal year.
When the strong effect of the deteriorated world economy still lingered, due to the decreased domestic and overseas sales units and the yen’s appreciation, Suzuki’s sales amount were ¥1.18 trillion, decreasing by 31 percent from the year-earlier period. It was the result close to that of five years earlier.
Though the sales and profit both fell below the previous year, with the operating profit, ordinary profit and the net profit as of the end of first half period all decreasing from the year-earlier period, Suzuki managed the surplus of ¥31.8 billion operating profit and ¥12.5 billion net profit, holding down the business investments and carrying out cost reduction measures.
Suzuki’s motorcycles sales were seriously affected by the aggravated economy, and the result was 1.43 million units (25% decrease from the year-earlier period) and ¥142.5 billion sales amount (49.6% decrease from the year-earlier period.)
The sales in automobiles, also affected by the currency exposure and global recession, were the 1.11 million in units (6.7% decrease from the year-earlier period) and ¥1.03 trillion in amount (27.3% decrease from the year-earlier period.) However, some countries in Europe and Asia saw Suzuki’s sales volume increase, taking advantage of their governments’ incentives, and overall the two regions managed an increased profit, though the sales amount decreased, along with the efforts made by the regions’ subsidiaries in reviewing and reducing their expenses.
Based on this half-year result, Suzuki Motor Corporation has raised the profit forecast for the year, to ¥40 billion operating profit from ¥10 billion, and to ¥15 billion net profit from ¥5 billion, though the company decides to stay with the originally forecasted ¥2.3 trillion sales amount.
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