Japan’s Suzuki registers first profit fall in six years image

The Japanese automaker, a midget compared to its larger peers Toyota, Nissan and Honda, nevertheless enjoyed a very healthy financial situation during the past six years until the first annual operating profit loss.

The company failed to achieve its own financial goals after six years of uninterrupted profit increase, mainly because of dwindling demand at home in Japan and in Southeast Asia – with the losses overcoming the massive currency tailwinds and the great earnings seen in India, the brand’s biggest worldwide market. Suzuki, the fourth biggest automaker in Japan, announced its operating profit slid by 4.4 percent to 179.42 billion yen ($1.50 billion) during the past fiscal year, which ended March 31, even though it had currency gains of 22.2 billion yen. Every Japanese automaker has been boosting its financial results thanks to the weaker home currency that helps lift earnings coming from exported deliveries. The small car specialist initially forecasted its annual guidance would edge up by 0.1 percent to 188 billion yen.

On the other hand, Suzuki has predicted its new fiscal year would come with positive results – an increase of 5.9 percent in operating profit to 190 billion yen buoyed by increased sales in India and Europe that would offset the continued weak demand at home in Japan. Total sales are expected to increase by 3.9 percent to 2.98 million units for the fiscal period even as Japan, the automaker’s second largest world market, is forecasted to drop 14.7 percent. India on the other hand is seen growing by 10 percent.

Via Reuters