Isuzu has reported a 3.5% rise in operating profit for the 2006 financial year (ending March 2006), to 90.7 billion yen (US$820m).
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Revenue grew 5.9% to 1.582 trillion yen.
Growth came from increased domestic demand, which saw Isuzu increase sales volume and share. Thailand was another major source of growth, particularly for pick-ups. Isuzu is expecting to export almost 100,000 completely built-up pick-ups from Thailand this year, and a further 70,000 units as knocked-down sets, in addition to selling 184,000 Thai-built pick-ups locally.
One the downside, Isuzu saw a decline in sales in its other major market, North America. Sales revenue fell 29% thanks to lower SUV sales. However, the company managed to reverse its loss-making position from a year earlier and record an operating profit in the region.
Net profit fell 1.8% to 58.96 billion yen, which was attributed to one-off losses for warranty fees, a rise in the tax burden of certain overseas subsidiaries, and the dismantling of a former domestic factory, according to Reuters.
For the 2007 financial year (ends March 2007), Isuzu is forecasting an 8.1% increase in sales revenue and a further increase in operating profit. However the company warned that high oil prices, the high yen and uncertainty over US demand represent downside risks.
Net profit is forecast to increase 6% to 65 billion yen.
Last month GM ended its 35-year equity alliance with Isuzu and sold its 7.9% stake in the company to Japanese trading houses Mitsubishi Corp. and Itochu Corp.
