SUZUKI MOTOR CORPORATION announces Financial Results for FY2011 first six months－Operating Results for 2nd quarter greatly impro

Printer-friendly versionPDF version

1．Outline of Financial Results for FY2011 first six months

Consolidated net sales of this first six months decreased by ¥92.6 billion (7.0%) to ¥1,226.2 billion year-on-year because of the impact of the Great East Japan Earthquake and the exchange rate factor following the yen appreciation, as well as decreased sales in India. Operating income decreased by ¥4.1 billion (5.9%) to ¥64.7 billion year-on-year. The Group was able to limit the fall in operating income at this level as a result of taking various measures such as increased production and sales activities in the domestic market, cost reduction and decrease of expenses. The operating income was much higher than the previous forecast, an increase of ¥24.7 billion (61.8%).
Ordinary income decreased by ¥7.3 billion (9.8%) to ¥67.6 billion year-on-year, but increased by ¥17.6 billion (35.1%) from the previous forecast. Net income of this first six months increased by ¥1.6 billion (5.3%) to ¥32.0 billion year-on-year, and increased by ¥2.0 billion (6.7%) from the previous forecast. This was because although the Company posted a provision for disaster in the amount of ¥17.5 billion as an extraordinary loss to cover a potential damage caused by tsunami at the Ryuyo region in Iwata city, Shizuoka prefecture from a possible Tokai and Tonankai earthquake, such loss was covered by increased profit from various items including a gain on sales of the stock of the company related to General Motors.
The Company decided to pay interim cash dividends 7 yen per share ( 6 yen per share in FY2010 interim dividends), an increase of 1 yen per share from the previous forecast, on the basis that consolidated operating results for FY2011 first six months were better than the previous forecasts.

2．The Operating Results by Segmentation

In the motorcycle business, mainly due to increased sales in North America and Asia and reduction of fixed cost, sales was ¥137.7 billion (increased by 4.9% from the same period of the previous fiscal year) and operating income was ¥0.7 billion (¥4.1 billion loss in the same period of previous fiscal year). Operating income was much better than the same period of previous fiscal year, and this second quarter (July to September 2011) was in the black, following this first quarter.
In the automobile business, sales unit increased in Indonesia, Thailand, Pakistan and other areas, but because of the impact of the Great East Japan Earthquake in Japan, exchange rate factor following the yen appreciation, and decreased sales in India, sales decreased by ¥101.4 billion (8.7%) to ¥1,062.0 billion year-on-year. Operating income also decreased by ¥9.0 billion (13.0%) to ¥60.3 billion year-on-year.
In the marine and power products, etc. business, sales increased by ¥2.3 billion (9.4%) to ¥26.5 billion year-on-year because of increased sales of outboard motor in various areas such as Japan, Europe, North America and Asia. Operating income also increased by ¥0.1 billion (1.8%) to ¥3.7 billion year-on-year.
In addition, operating results in North America greatly improved from ¥2.1 billion loss in the same period of previous fiscal year to ¥0.3 billion loss in this first six months.

3．Full year forecasts for consolidated operating results

On the basis that operating results for FY2011 first six months were much better than the previous forecasts, the Company revised the premise for foreign exchange rate in second half of FY2011 to ¥75/US$ (previous forecast ¥80/US$) and ¥105/Euro (previous forecast ¥110/Euro ) and reviewed the full year forecasts. The Company decided not to revise the previous forecasts as income target, taking the uncertainty of the influence of flood disaster in Thailand into consideration.

For more information, please clickhere.

News Source : SUZUKI MOTOR CORPORATION announces Financial Results for FY2011 first six months－Operating Results for 2nd quarter greatly improved from the previous forecasts An increase of 1 yen per share in Interim Dividends－