Fuji Heavy Industries Ltd., the maker of Subaru-brand cars, expects full-year profit to fall 30 percent after the country’s record earthquake in March disrupted production and sales while the yen strengthened, the company said Wednesday.
Net income may decline to ¥35 billion in the 12 months ending March 31 from ¥50.3 billion a year earlier, the Tokyo-based company said.
Sales may fall 6.4 percent to ¥1.48 trillion, Fuji Heavy said.
Domestic automakers are boosting production as they recover from the March 11 natural disaster, which damaged car factories and parts plants, leading to a 31 percent plunge in domestic vehicle output in May.
A 15 percent gain by the yen against the dollar last year is also eroding Fuji Heavy’s repatriated earnings from overseas sales.
Fuji Heavy’s global vehicle production may rise 0.7 percent this fiscal year, the company said, as a 29 percent increase in the second half of the year will offset a 26 percent drop in the first half.
The automaker aims to increase vehicle sales 40 percent within five years and to sell 1 million units annually within 10 years, it said in a midterm business plan announced Wednesday.
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