Isuzu Motors annual earnings jumped 57% to a record high but the truck and diesel engines specialist reportedly predicted that earnings would decline in the current fiscal year due to higher costs and weaker domestic sales.
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The truck maker posted a group net profit for the year to the end of March of 92.39bn yen ($US700m; EUR569m), up from 58.96bn yen the previous year, the Associated Press (AP) reported.
Group revenue for last fiscal year rose 5.1% to 1.66 trillion yen from 1.58 trillion yen.
But for this fiscal year, Isuzu expects net profit to fall 13% to 80bn yen while sales are projected to slip 0.8% to 1.65 trillion yen, the report said.
Isuzu, which formed a capital alliance with Toyota Motor in November after dissolving its tie-up with General Motors in April 2006, reportedly said demand for trucks in Japan would likely fall this year as fewer new vehicles will be needed to meet stricter emissions guidelines.
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By GlobalDataAP noted the company is also expecting higher costs for materials and from the development of safety and fuel-efficient technologies.
Its global vehicle sales grew 4.9% to 468,301 units last fiscal year, as overseas sales climbed 6.7% to 371,500 vehicles. Domestic sales dropped 1.4% to 96,801 vehicles, the Associated Press reported.
