Suzuki Announces the Financial Results for FY2014 Third Quarter
(April 2014 to December 2014)
- Increased sales
- Decreased net income
- Downward revision of the net income by ¥10.0 billion from the forecasts for the full year operating results

1. Outline of the Financial Results for FY2014 Third Quarter (April 2014 to December 2014)

The consolidated net sales of the third quarter (April 2014 to December 2014) increased by ¥67.3 billion (3.2%) to ¥2,143.0 billion compared to the corresponding period of the previous fiscal year. The Japanese domestic net sales decreased by ¥4.1 billion (0.5%) to ¥773.8 billion year-on-year owing to the decrease in the automobile and motorcycle sales. The overseas net sales increased by ¥71.4 billion (5.5%) to ¥1,369.2 billion year-on-year mainly owing to the increase in the automobile sales in India.

In terms of the consolidated income, the operating income was at the same level as the corresponding period of the previous fiscal year at ¥135.2 billion mainly owing to the decrease in the income in Indonesia and Thailand, despite the increase in the income owing to the exchange rate and India. Although the ordinary income increased by ¥4.9 billion (3.5%) to ¥144.4 billion year-on-year mainly owing to the decrease in the foreign exchange losses, the net income decreased by ¥2.6 billion (3.1%) to ¥79.9 billion year-on-year mainly owing to the increase in the income taxes and the increase in the adjustment of minority interests in income.

2. The Operating Results by Segment

In the automobile business, although the Company made efforts to expand its sales and strengthen the products such as by winning numbers of awards including the 2015 RJC Car of the Year award for the much-favored Hustler minicar, and launching the all-new Alto minicar, which has achieved the best fuel efficiency among non-hybrid gasoline vehicles in Japan of 37km/L (measured in JC08 test cycle), partly owing to the impact of the recoil reduction from the hike in the rate of the consumption tax in Japan, the Japanese domestic net sales decreased year-on-year. The overseas net sales increased year-on-year mainly owing to the increase in India. Consequently, the net sales of the automobile business increased by ¥73.5 billion (4.0%) to ¥1,917.0 billion year-on-year. The operating income decreased by ¥0.2 billion (0.1%) to ¥133.7 billion year-on-year mainly owing to the decrease in the income in Indonesia and Thailand, despite the increase in the income owing to the exchange rate and India.

In the motorcycle business, the net sales decreased by ¥12.5 billion (6.5%) to ¥179.9 billion year-on-year mainly owing to the decrease in the sales in Asia. The operating loss of ¥4.6 billion in the corresponding period of the previous fiscal year became an operating loss of ¥5.0 billion.

In the marine and power products, etc. business, the net sales increased by ¥6.3 billion (15.8%) to ¥46.1 billion year-on-year mainly owing to the increase in the sales of the outboard motors in Europe and North America. The operating income increased by ¥1.1 billion (19.7%) to ¥6.5 billion year-on-year.

As for the operating income by geographical areas, Japan decreased by ¥1.0 billion (1.0%) to ¥94.5 billion year-on-year mainly owing to the intensifying competition of automobiles, despite the increase in the income owing to the exchange rate. Asia also decreased by ¥8.1 billion (16.0%) to ¥42.4 billion year-on-year mainly owing to the decrease in the income in Indonesia and Thailand. As for Europe, the operating loss of ¥1.3 billion in the corresponding period of the previous fiscal year became an operating loss of ¥2.4 billion.

3. Forecasts for the Consolidated Operating Results-Full Year

As for the forecasts for the consolidated operating results, as a result of reviewing the figures such as the sales units and the exchange rates of each country based on the results of this third quarter, the overall consolidated net sales, operating income, and ordinary income are kept unchanged from the previous forecasts. As for the net income, downward revision of ¥10.0 billion has been made from the previous forecasts, keeping into consideration the impact of the reversal of deferred tax assets accompanied by the reduction of the income tax rates from the next fiscal year.
The Group will work as one to reform in every field to accomplish more than the below forecasts for the consolidated operation by pursuing the business activity.

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