Isuzu Motors Limited published their FY2015 Q1 (April-June) consolidated financial results on August 4. Because of the strong domestic sales and pickup truck exports to Thailand, and the yen’s depreciation, both sales and income for each stage hit record high for the quarter.
Isuzu Director of the Board and Managing Executive Officer Makoto Kawahara revealed at the financial results press conference held in Tokyo on that same day: “We hit numerical figures that are a little too good to be true. One reason is the yen’s depreciation; the other is the delayed occurrence of costs, which was later than what had been forecasted.”
Isuzu’s Q1 consolidated operating income is up 33% year-on-year to 49.2 billion yen. Isuzu’s first-half and full-year earnings forecasts remain unchanged. Subtracting the Q1 performance from the first-half operating income forecast of 75 billion yen, the operating income forecast for Q2 is 25.7 billion yen, a significant increase of 35% year-on-year.
Kawahara explained regarding this: “The first-half operating income forecast of 75 billion yen was not changed because it’s the minimum level, and to a certain extent, we believe that it will be higher than that.”
He further discussed regarding the second-half forecasts: “The Indonesian and Thai markets remained sluggish in the first half of the year, but we formed our assumptions believing that they would recover in the second half of the year.” However, that scenario is likely to collapse. Furthermore, there have been air strikes, terrorism, and political uncertainty in the Middle East recently. Putting that into consideration, the forecasts remain the same since those are still uncertain.”
(Translated by Katherine N. Bantiles)