Car partsmakers in Japan are anticipating a considerable downturn in their earnings in the second half of fiscal 2010 due to the yen’s appreciation and the expiration of a government subsidy programme for the purchase of eco-friendly vehicles, an industry body has said.
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The Japan Auto Parts Industries Association told Kyodo News its 83 member manufacturers are forecasting a combined operating profit of JPY448.5bn in the six-month period to the end of next March, down 27.8% from a year earlier, on sales of JPY9,171.2bn, down 3.5%.
The new agency noted that the projection was a stark reversal from the April-September fiscal first half when the manufacturers posted a combined operating profit of JPY656.8bn, a turnaround from a year earlier loss of JPY30.9bn on sales of JPY9,574.1bn yen, up 29.4%, thanks to the subsidy programme and brisk vehicle sales in emerging Asian economies.
Combining the results in the fiscal first half and projections for the second half, the auto parts makers are expecting a combined operating profit of JPY1,105.3bn for the whole of the fiscal year, up 87.1%, on sales of JPY18,745.3bn, up 10.9%, the association said.
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