Global News

11 May 2010

Suzuki improves profits in the fiscal year 2009

Suzuki Motor Corporation ended the financial year through 31 March 2010 with increased consolidated profits compared to those of the previous year, despite a severe market situation. The tough profit situation caused by a sales decline and exchange influences were recovered by the reduction of operating expenses mainly by strong “internal cost reduction” initiative and favorable sales of automobiles in Asia.

Consolidated sales declined for the two consecutive years to ¥2.47 trillion (82.2% y-o-y) on account of the reduced domestic and overseas sales and fluctuations in exchange rates due to Yen appreciation. However, consolidated profits exceeded those of the previous year with ¥79.4 billion of operating income (103.2% y-o-y), ¥93.8 billion of ordinary income (117.8% y-o-y) and ¥28.9 billion of net income (105.4% y-o-y).

As for operating results of automobile segment, the Group achieved increased overall sales volume of 2,349 thousand units(101.9% y-o-y) and decreased global sales of ¥2.18 trillion(86.5% y-o-y). The operating income increased to 90.6 billion yen (131.2% y-o-y) because the cost reduction and the reduced operating expenses covered the sales decrease and the reduced profits by exchange influences.

Regarding the motorcycle segment, overall sales volume (ATV included) was 3,017 thousand units (90.1% y-o-y) and global sales were ¥262.9 billion (57.9% y-o-y) with an operating loss of ¥21.1 billion.

Sales and operating income of marine and power products business were ¥45.4 billion (68.1% y-o-y) and ¥5.3 billion (57.5% y-o-y).

As for the operating results of regional segmentation, while the management environment of the Group has remained severe in the US and Europe, sales in Asia increased to 780.6 billion yen (103.7% y-o-y) because the increased number of automobiles sold by Maruti Suzuki India Ltd. in India covered the sales decrease in ASEAN and the sales decrease influenced by exchange fluctuations of Yen appreciation, and operating income increased to 56.2 billion yen (159.0% y-o-y).
In Japan, sales were ¥1.49 trillion (81.6% y-o-y) on account of the reduced domestic and export sales. However, operating income increased to ¥34.1 billion (118.6% y-o-y) because the reduced operating expenses covered the reduced profits by reduced sales and influence of exchange fluctuations.

For the sales outlook of the next year, sales increases are expected in Asia, South and Central America, and Oceania while sales in Japan, the US, and Europe are expected to continue to be low. We will make further efforts for improvement in every aspect as a group and for development of business activities that would lead to exceeding the consolidated results estimates.

(Forecast of consolidated results) *

Net Sales ¥2.5 trillion (up 1.3% y-o-y)
Operating income ¥80.0 billion (up 0.8% y-o-y)
Ordinary income ¥95.0 billion (up 1.2% y-o-y)
Net income ¥30.0 billion (up 3.8% y-o-y)
For Ex rates 90 yen/US$, 115 yen/Euro

For further information on the fiscal year 2009 financial report, please refer below:

*The business forecasts mentioned above are calculated based on currently available information and assumptions and contain risks and uncertainty. Please note that the future results may greatly vary by the changes of various factors. Those factors, which may influence the future results, include economic conditions and the trend of demand in major markets and the fluctuations of foreign exchange rate (mainly Yen/US dollar rate, Yen/Euro rate).