Suzuki Announces Financial Results for FY2019 Second Quarter
(April 2019 to September 2019)
- Decreased net sales and income owing to the impact of decrease in Japan production due to restructuring of final inspection structure, as well as slowdown in the Indian automobile market
1. Outline of Financial Results for FY2019 Second Quarter
Net sales and income of this second quarter (April 2019 to September 2019) decreased following the first quarter owing to the impact of decrease in Japan production due to restructuring of final inspection structure, as well as decrease in Indian automobile sales due to slowdown in the overall market.
In detail, consolidated net sales decreased by ¥174.0 billion (9.0%) to ¥1,755.4 billion compared to the corresponding period of the previous fiscal year. In terms of income, operating income decreased by ¥79.9 billion (40.2%) to ¥118.6 billion, ordinary income decreased by ¥92.8 billion (40.0%) to ¥139.5 billion, and net income attributable to owners of the parent decreased by ¥56.9 billion (41.8%) to ¥79.3 billion year-on-year.
The interim cash dividends will be ¥37.00 per share (previous interim cash dividends were ¥37.00 per share).
2. Operating Results by Segment
In the automobile business, net sales decreased by ¥179.9 billion (10.2%) to ¥1,581.4 billion year-on-year owing to the impact of decrease in Japan production due to restructuring of final inspection structure, as well as decrease in sales in India and Pakistan, and impact of appreciation of Yen. Operating income decreased by ¥79.4 billion (42.8%) to ¥106.1 billion year-on-year owing to decrease in sales, as well as appreciation of Yen and increase in various expenses.
In the motorcycle business, net sales increased by ¥0.2 billion (0.2%) to ¥126.5 billion year-on-year mainly owing to increase in sales in India. Operating income decreased by ¥2.3 billion (56.8%) to ¥1.7 billion year-on-year mainly owing to depreciation expenses of the Hamamatsu Plant which started its operation in September 2018 and profit deterioration in Indonesia.
In the marine business, etc., net sales increased by ¥5.7 billion (13.6%) to ¥47.5 billion and operating income increased by ¥1.8 billion (20.2%) to ¥10.8 billion year-on-year mainly owing to sales contribution of large outboard motor DF350A in North America.
With respect to operating results by geographic region, Japan and Asia saw decrease in net sales and income. With respect to operating income, Japan decreased by ¥19.4 billion (22.7%) to ¥66.3 billion, and Asia decreased by ¥68.6 billion (72.3%) to ¥26.3 billion year-on-year.
3. Forecasts for Consolidated Operating Results
The consolidated business forecasts are as per announced on 10 October 2019.
The Group will work as one to reform in every field and pursue the business activity to accomplish more than the below forecasts for the consolidated operating results.
| Net Sales | ¥3,500.0 billion | (down 9.6% year-on-year) |
|---|---|---|
| Operating Income | ¥200.0 billion | (down 38.3% year-on-year) |
| Ordinary Income | ¥220.0 billion | (down 42.0% year-on-year) |
| Net Income attributable to owners of the parent |
¥140.0 billion | (down 21.7% year-on-year) |
| (Foreign Exchange Rate) | ¥107/US$ ¥118/Euro ¥1.53/Indian Rupee ¥0.76/100 Indonesian Rupiah ¥3.50/Thai Baht |
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*Forecasts for the consolidated operating results are based on currently available information and assumptions, contain risks and uncertainty and do not constitute guarantees of future achievement. Please note that the actual 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 rates (mainly U.S. dollar/Yen rate, Euro/Yen rate, Indian Rupee/Yen rate).
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