Daihatsu Motor Co. President Masanori Mitsui

Daihatsu forecast on current fiscal year’s operating profit, down 10% to 100 billion yen

Daihatsu Motor Co., Ltd. announced on April 27, the current (March 2016 period) and the March 2015 financial results. The consolidated operating profit is down 10% to 100 billion yen year-on-year, which is expected to further decrease for two consecutive terms. This is because of the decreasing profits due to the exchange rate and decrease of domestic kei car sales.

This fiscal year’s domestic kei car sales plan is down 8% to 630,000 units. They are preparing to reduce the falling margin in relation to the market forecast of the industry which is down by two digits. However, the environmental demands did not improve also in abroad, mainly in Indonesia. The sales in Indonesia is expected to remain unchanged.

The currency is expected to continue depreciating in Indonesia. The currency accounts for the entire sales decline of 6.5 billion yen. The net income is expected to be down 12% to 60 billion yen. Masanori Mitsui was interviewed at Tokyo and he said, “The difficult state will continue due to the market stagnation for both Japan and foreign countries. Drastic business reforms and new product launches are to be promoted. However, the results will be obtained after 2016.”

The operating profit of the March 2015 term is down 24.6% to 110.6 billion yen, which is a significant drop attributable to sales decline in both domestic and foreign countries, and the deterioration of vehicle composition. This is the first sales decline in six terms since March 2009.

(Translated by Natassia Jeronne D. Martinez)