Suzuki reported its financial results for April-June 2015 (Q1) on August 3. Operating income is up 8% year-over-year to 55.2 billion yen, owing to strong sales and depreciation of the yen. This is the third consecutive year that Suzuki hit record high for the same period.
The global auto sales for the first quarter are down 1% to 688,000 units. Although the kei vehicle demand in Japan was sluggish, down 17% to 152,000 units, the sales in India remained strong, up 13% to 306,000 units. The yen’s depreciation against the Indian rupee contributed to the increased operating income of 6.8 billion yen.
The net income declined for the first time in six years, down 16% to 31.7 billion yen. The revenue gain of Maruti Suzuki curbed Suzuki’s consolidated net profit. The full-year forecasts remain unchanged from the previous forecasts, with the operating income figure set to 190 billion yen (up 6% year-over-year). Managing Officer Masahiko Nagao expressed a cautious viewpoint at the press conference: “Disregarding the strong performance in India, we are in a severe situation. This indicates that there will be a decrease in net income.”
(Translated by Katherine N. Bantiles)