• Kyodo

  • SHARE

Suzuki Motor Corp. said Thursday its group net profit for fiscal 2011 is expected to rise 10.7 percent from the previous year to ¥50 billion as it aims to accelerate sales in other parts of Asia.

In a belated earnings forecast for the year from April compiled in the aftermath of the March disaster, the maker of minivehicles and motorcycles also said it expects its group operating profit to increase 2.9 percent to ¥110 billion on sales of ¥2.61 trillion, up 0.1 percent.

Suzuki said its sales of four-wheel vehicles are expected to rise 6.7 percent to 2.82 million units, lifted by 9.3 percent growth in overseas sales in markets such as in India, China and Indonesia, more than offsetting a 2.3 percent dip in domestic sales.

The company, based in Hamamatsu, Shizuoka Prefecture, expects its global output of four-wheel vehicles in the fiscal first half to September to decline 1.4 percent from a year earlier due to the effects of the March 11 earthquake and tsunami.

But it plans to increase full-year output by boosting production in the fiscal second half, it said. As a result, the company plans to increase global output in the current fiscal year by 5.6 percent from the previous year to 3.04 million units.

President Osamu Suzuki told a news conference in Tokyo that the automaker, which has most of its domestic production bases in Shizuoka Prefecture, is facing the need to decentralize its production to reduce risks posed by natural or nuclear disasters.

“We are considering transferring production bases,” he said.

While the carmaker plans to proceed with cost-cutting efforts, its operating profit is expected to be negatively affected by the strong yen, it also said.

The automaker refrained from releasing the outlook for the current fiscal year when it reported its earnings results for fiscal 2010 in May, citing difficulties in assessing the impact of the quake-tsunami disaster, which ravaged a wide area of northeastern Japan and disrupted nationwide supply chains.

Daihatsu sees profit drop

Daihatsu Motor Co. said Wednesday it projects a group net profit of ¥37 billion for fiscal 2011, down 29.6 percent from the previous year, due to rises in material costs, while forecasting a 0.7 percent rise in sales to ¥1.57 trillion.

In an earnings statement for the 12-month period to next March 31, the subsidiary of Toyota Motor Corp. said rises in material costs will likely shrink its net profit by about ¥20 billion, although group sales will receive a boost from brisk performances in Malaysia and Indonesia.

In a time of both misinformation and too much information, quality journalism is more crucial than ever.
By subscribing, you can help us get the story right.

SUBSCRIBE NOW