Global News

2 November 2010

Suzuki achieved improved profits for the First Half of FY2010

Suzuki Motor Corporation marks increases both in sales and profit for the first half (1 April through 30 September 2010) of FY 2010 despite continued severe market condition.

The Group achieved consolidated sales of ¥1,318.8 billion (up ¥137.2 billion, 111.6% y-o-y) thanks to increased automobile sales in Japan and increased motorcycle sales in Asia despite automobile and motorcycle sales decrease in North America and Europe.

As for consolidated profits, the Group achieved operating income of ¥68.8 billion (up ¥37.0 billion y-o-y), ordinary income of ¥74.9 billion (up ¥35.8 billion y-o-y), and net income of ¥30.4 billion (up ¥17.9 billion y-o-y) because the sales increase and the cost reduction covered the reduced profits caused by the exchange influences and the increase in various expenses, R & D expenses and depreciation expenses.

As for operating results of automobile segment, sales increased to ¥1,168.5 billion (up ¥140.7 billion, 13.7% y-o-y) and operating income of ¥68.4 billion (up ¥36.1, 111.8% y-o-y) thanks to sales increased in Japan and Asian countries such as India and Indonesia.

Regarding motorcycle segment, sales of the motorcycle business decreased by ¥11.3 billion (8.0%) to ¥131.2 billion year-on-year due to the sales decline in North America, Europe and Japan although the sales increased in Asia. As for profits, operating loss was reduced by ¥1.4 billion year-on-year because of improvement of operating results in Asia, but operating loss was ¥4.1 billion on account of the continued sales slowdown of large-size motorcycles for Europe and the US.

Sales of marine and power products, etc. business increased by ¥2.4 billion (11.4%) to ¥24.2 billion year-on-year thanks to the sales increase mainly in Europe, Asia and Oceania. Operating income also increase by ¥0.7 billion (27.2%) to ¥3.6 billion year-on-year.

Taking the situation of FY2010 first half into account, the Group has revised the consolidated business full year forecast as follows.

(Forecasts for Consolidated Operating Results – Full Year)

Net Sales ¥2,550 billion (up 3.3% y-o-y)
Operating income ¥100 billion (up 26.0% y-o-y)
Ordinary income ¥110 billion (up 17.2% y-o-y)
Net income ¥35 billion (up 21.0% y-o-y)
ForEx rates ¥84/US$ (1st half: ¥89, 2nd half: ¥80)
¥112/Euro (1st half: ¥114, 2nd half: ¥110)

* The forecasts for consolidated operating results 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 fluctuation of foreign exchange rates (mainly Yen/US dollar rate, Yen/Euro rate).

For more information, please click here.