JAPAN: Component suppliers’ profits up

Aggregate group pre-tax profit at 71 Japanese vehicle component suppliers rose
32.5 percent in fiscal 2000/01 to 507.9 billion yen ($US4.3 billion), AutoAsia
Online reported.

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Results were helped by a modest recovery in domestic demand, healthy exports
to Asia and large increases in United States production, the website added.

Combined consolidated sales reached 10,120 billion yen, up 6.6 percent on the
year, with 56 suppliers showing year-on-year growth.

Fifty-nine companies reported greater profits, according to figures published
by the Japan Auto Parts Industries Association.

The benefits of a growing market in the US – a trend now reversed –
and domestic vehicle production volume topping 10 million units for the first
time in three years were supported by cost-cutting efforts and restructuring,
AutoAsia Online said.

Progress this year will be much less impressive, JAPIA predicts.

The industry group forecasts combined sales up 1.7 percent to 10,290 billion
yen and and a tiny 1.2 percent increase in aggregate pre-tax profit to 514 billion
yen.

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