Fuji Heavy Industries, the producer of Subaru vehicles, increased its full-year profit target by 13% due to the weak yen and a boost in auto sales.
The company expects net income for the fiscal year ending March 2013 to reach 76 billion yen ($811 million), compared with the previous target of 67 billion yen and the analysts’ estimates of 83.3 billion yen. Fuji joins Toyota in increasing its profit target, as the weak yen makes Japanese vehicles more profitable overseas.
Fuji Heavy Industries delivered a record number of vehicles last year in the US market, lead by the Impreza hatchback. The company announced it expects sales of 722,000 units for the full year, up with 8,000 from its previous forecast, and projections for the revenue and operating income have also been increased.
Last month Fuji Heavy Industries said it aims to reach a 6% increase in global sales this year, relying on the new Forester SUV model, the Impreza and the XV crossover vehicles. The company sold 706,612 units last year and sales in China are expected to increase 32% to 57,500 units this year, a sign that the relation between China and Japan has begun to heal.
“We thought we will have to wait until next spring to recover, but it has shown signs that sales recovery may be earlier than we expected,” said President Yasuyuki Yoshinaga.