Suzuki Motor Corp. reportedly posted a 12% rise in first-quarter operating profit on Tuesday, benefiting from booming demand for minicars in Japan and robust sales in Asia.
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According to Reuters, operating profit at Suzuki, owned one-fifth by General Motors and Japan’s fourth-biggest auto maker by stock value, was 27.51 billion yen ($US248.2 million) in the April-June quarter, while net profit jumped 31% to 16.56 billion yen.
Sales reportedly rose 2.1% to 587.29 billion yen, also driven by a 30% surge in European car sales and a 4.3% rise in domestic car sales, and that made up for a slump in motorcycle sales in Japan, Europe and North America.
Reuters noted that, last week, rival Daihatsu Motor also revealed rosy results and raised its full-year earnings forecasts citing brisk sales of the 660cc minivehicles at home.
After a double-digit jump in profits last year, Suzuki, known for its cost-cutting savvy, has forecast another record-breaking year fuelled by steady gains in the thriving Asian market, which accounts for about a fifth of its revenues, the report said.
It kept its forecasts unchanged for 100 billion yen operating profit and 60 billion yen net profit, Reuters added.
The report noted that Suzuki’s biggest strength is in the fast-growing Indian market, where its Maruti 800, Alto 1000 and other models make up about half of the country’s cars through majority-owned Maruti Udyog, India’s biggest auto maker.
Driven by a 20% climb in sales and a rigorous cost-cutting programme in Asia’s fourth-largest economy, formerly state-owned Maruti Udyog last week reported a 42% rise in net profit during the quarter, Reuters said.
