Strong Q3 Financial Result for Suzuki
Improved sales results in Japan and throughout Asia have resulted in strong third quarter financial figures for Suzuki Motor Corporation
SHIZUOKA, JAPAN – Feb 11, 2013: Japanese domestic net sales in the third quarter (April 2012 to December 2012) increased by ¥65.4 billion (up 9.5 per cent year on year) to ¥749.7 billion.
In overseas markets, net sales decreased by ¥40.6 billion (down 3.6 per cent) to ¥1,073.1 billion year-on-year mainly because of the impact of the exchange conversion due to the yen appreciation, and the economic stagnation in Europe. As a result, the overall consolidated net sales increased by ¥24.8 billion (1.4 per cent) to ¥1,822.8 billion year-on-year.
In terms of consolidated income, the operating income increased by ¥5.2 billion (5.9 per cent) to ¥92.9 billion year-on-year, and the ordinary income increased by ¥4.9 billion (5.2 per cent) to ¥101.3 billion year-on-year.
The Group was able to increase the operating income by covering the factors of income decrease such as the impact of the exchange rate and the decrease of sales in Europe, with the factors of income increase such as the increase of Japanese domestic automobile sales and cost reduction.
Net income increased by ¥7.8 billion (19.2 per cent) to ¥48.4 billion year-on-year, although there was allocation of ¥15.5 billion for provision for loss on liquidation of subsidiaries and affiliates as an extraordinary loss.
In the automobile division, Japanese domestic net sales increased year-on-year. The overseas net sales decreased year-on-year mainly because of the impact of the exchange conversion due to the yen appreciation, and the decrease of sales in Europe.
As a result, the overall net sales of the automobile business increased by ¥52.3 billion (3.3 per cent) to ¥1,626.5 billion year-on-year. The operating income increased by ¥13.0 billion (15.2 per cent) to ¥98.8 billion year-on-year to mark the highest operating income ever for the third quarter, mainly due to the increase of income in India, Indonesia, and the Japanese domestic market.
In the motorcycle business, net sales decreased by ¥25.5 billion (13.5 per cent) to ¥163.3 billion year-on-year mainly due to the decrease of sales in Europe and Asia.
As for the operating income, the operating loss of ¥2.8 billion in the corresponding period of the previous fiscal year became an operating loss of ¥10.0 billion.
In the marine and power products, net sales decreased by ¥2.0 billion (5.8 per cent) to ¥33.0 billion year-on-year mainly due to the decrease of exports to Europe. The operating income decreased by ¥0.6 billion (13.3 per cent) to ¥4.1 billion year-on-year.
Geographical breakdown of results saw Japan and Asia increased sales and income due to the increase of automobile sales.
Although Japan is having difficulty in export profitability, the quarter marked the highest operating income ever for any corresponding period due to the increase of income in the Japanese domestic automobile business. Following the second quarter, Europe marked an operating loss due to the persisting economic stagnation.
The Group has made an upward revision for the full year forecasts of the operating and the ordinary income. There is no change to the target of the net income from the previous forecast because there was allocation of ¥15.5 billion for provision for loss on liquidation of subsidiaries and affiliates as an extraordinary loss in the third quarter.
The Group will work as one to reform in every field to accomplish more than the below forecasts for the consolidated operation by pursuing the business activity.