Suzuki Motor Corporation announced on May 11 its financial results in March 2015 and its earnings forecast for March 2016. The consolidated operating income for the current fiscal year is up 6% year-on-year to 190 billion yen, which was expected as the highest for the first time in two years. This is due to the sales growth, mainly in India.
Their world sales of automobiles on the current fiscal year is up 4% to 2,979,000 units; they planned to hit record high. India aims for an increase, which is up 10% to 1.29 million units. For the operating income, the 29 billion yen profit result is expected due to cost reduction. However, the exchange rate caused a negative effect of 9 billion yen decrease, attributable to the low value of euro. The net profit is forecast as up 14% to 110 billion yen, updating the highest record for the first time in two periods. The exchange rate assumed is 115 yen per dollar and 125 yen per euro.
Osamu Suzuki, chairman, president and chief executive officer of Suzuki, stated at the press conference, “We must achieve sales and income in order to survive.” He showed their plan to take an offensive approach, such as maintaining a certain share on domestic kei cars. The net sales for March 2015 period is up 2.6% to 3.155 trillion yen, recovering for the first time since the Bankruptcy of Lehman Brothers in 2008.
However, the operating income is down 4.4% to 179.4 billion yen, and the net income is down 9.9% to 96.9 billion yen because of recall expenses. Both have decline for the first time in six years since March 2009.
(Translated by Natassia Jeronne D. Martinez)