Suzuki Motor first quarter sales rose 4.8% year on year to JPY675.8bn as volume rose in Asia and Europe.

Home market sales fell 10% to JPY26.8bn (10.0%) as OEM sales dropped.

Operating income increased 23.7% to JPY44.1bn and net income 10.5% to JPY27bn.

"Sales in India is [sic] at a standstill in the midst of economic slowdown and increase of fuel price [sic]," the automaker said, noting automobile sales rose 3.3% to JPY590.8bn and operating income 19.3% to a Q1 record of JPY44.8bn.

Full fiscal year forecasts were revised up - sales by 8.6% to JPY2,800.0bn, operating income up 14.1% to JPY165.0bn and net income up 24.4% to JPY100.0bn.

Show the press release

Suzuki Announces Financial Results for FY2013 First Quarter

(April 2013 to June 2013)

- Increased sales for two consecutive corresponding periods

- Highest ever income amount and income margin

- Upward revision of the forecasts for the operating results

1.Outline of Financial Results for FY2013 First Quarter (April 2013 to June 2013)

The consolidated net sales of the first quarter (April 2013 to June 2013) increased by ¥31.0 billion (4.8%) to ¥675.8 billion compared to the corresponding period of the previous fiscal year, owing to increase in Asia and Europe. The Japanese domestic net sales decreased by ¥26.8 billion (10.0%) to ¥240.2 billion year-on-year mainly due to decrease of OEM sales. The overseas net sales increased by ¥57.8 billion (15.3%) to ¥435.6 billion year-on-year.

In terms of the consolidated income, the operating income increased by ¥8.5 billion (23.7%) to ¥44.1 billion year-on-year, the ordinary income increased by ¥7.0 billion (17.3%) to ¥47.2 billion year-on-year, and the net income increased by ¥2.5 billion (10.5%) to ¥27.0 billion year-on-year. The Group was able to increase the operating income such as by increase of income in the automobile business of Japan and Asia.

Each income amount and income margin of the operating income, the ordinary income, and the net income became the highest ever for the first quarter.

2.The Operating Results by Segment

In the automobile business, while each brand in the Japanese domestic market focused on minivehicles, the Group expanded the sales of minivehicles equipped with the SUZUKI GREEN Technology such as the WagonR and the Spacia. The Group also strengthened its products to expand the sales by newly introducing the Spacia Custom and the Alto Lapin Chocolat. As for the overseas, while the sales in Indonesia and Thailand are increasing, the sales in India is at a standstill in the midst of economic slowdown and increase of fuel price. Under these circumstances, the net sales of the automobile business increased by ¥18.9 billion (3.3%) to ¥590.8 billion year-on-year. The operating income increased by ¥7.3 billion (19.3%) to ¥44.8 billion year-on-year, marking the highest ever operating income for the first quarter.

In the motorcycle business, the net sales increased by ¥11.0 billion (18.5%) to ¥70.5 billion year-on-year mainly owing to increase of sales in Europe and exchange fluctuation. Although export income from Japan improved, there was operating loss of ¥2.7 billion due to having difficulty in making Asian market profitable.

In the marine and power products, etc. business, the net sales increased by ¥1.1 billion (8.8%) to ¥14.5 billion year-on-year, and the operating income increased by ¥0.4 billion (25.0%) to ¥2.0 billion year-on-year.

As for the operating results by geographical areas, Japan and Asia marked the highest ever operating income.

3. Forecasts for the Consolidated Operating Results-Full Year

As for forecasts for the consolidated operating results, the Group has revised the forecasts as per below, as a result of reviewing figures such as foreign exchange rate, sales units, and capital expenditures.

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.

(Forecasts for the consolidated operating results-Full Year)

Net Sales ¥2,800.0 billion

(up 8.6% year-on-year, unchanged from the previous forecast)

Operating Income ¥165.0 billion

(up 14.1% year-on-year, up ¥15.0 billion from the previous forecast)

Ordinary Income ¥180.0 billion

(up 15.7% year-on-year, up ¥15.0 billion from the previous forecast)

Net Income ¥100.0 billion

(up 24.4% year-on-year, up ¥10.0 billion from the previous forecast)

(Foreign Exchange Rate) ¥96/US$

¥126/Euro

¥1.65/Indian Rupee

¥0.97/100 Indonesian Rupiah

 

¥3.10/Thai Baht

Original source: Suzuki