Subaru Corporation operating income in the fiscal year to 31 March 2018 fell 7.6% year on year ti to JPY379.4bn, as foreign exchange gains were offset by a rise in sales expenses due to higher interest rates in the US, higher costs of raw materials, an increase in R&D expenses, and other factors.
Net income fell 22% to JPY220.4bn, reflecting an extraordinary loss of JPY81.3bn to account for Takata airbag recall-related losses.
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Global sales of Subaru vehicles increased 0.2% to 1,067,000 units.
Unit sales in Japan rose 2.8% to 163,000 units, as passenger car sales driven by the Impreza and the Subaru XV offset a decline in mini vehicle sales. Overseas unit sales decreased 0.2% to 903,000 units, as a decline in the competitive Chinese market offset growth led by the Impreza and the Subaru XV in North America and other markets.
Sales increased 2.4% to JPY3,405.2bn (US$31.1bn) due mainly to foreign exchange gains and unit sales growth.
Unit sales in North America marked a record for the ninth consecutive year. Sales by value and unit set records for the sixth consecutive year.
Forecasts
With prospects of further growth in North America and other regions, global unit sales are projected to increase 3.1% to 1,100,000 units in fiscal 2018/9.
Sales by value are projected to decrease 4.6% to JPY3,250bn, as unit sales growth is expected to be offset by factors including foreign exchange losses and accounting policy change.
The company projects operating income of JPY300bn (down 20.9%), and net income of JPY220bn (down 0.2%), as unit sales growth is expected to be offset by factors including foreign exchange losses, a rise in sales expenses due to higher interest rates in the US, and raw material cost increases.
Global unit sales, overseas unit sales, and North American unit sales are projected to post records, however.
