Fuji Heavy Industries and Mazda joined Toyota in increasing their profit target as domestic production will benefit from the weak yen.
Over the past three months Mazda more than doubled its net income target to 26 billion yen ($277 million) for the fiscal year ending March 2013, while Fuji heavy increased its forecast by 13% to 76 billion yen. All Japanese companies will benefit from the weakening yen which is to reach a 21/2 year low.
“The currency has the biggest impact,” said Takashi Aoki, a Tokyo-based fund manager at Mizuho Asset Management Co., which oversees about $38 billion. “At the current level, we can expect earnings in the fourth-quarter to greatly outperform, and for earnings to the next fiscal year to exceed expectations as well.”
In 2012, Fuji Heavy, which produces the Subaru cars, sold a record number of vehicles in the US, due to its best-selling Impreza hatchback. Fuji Heavy produced 75% of its vehicles in Japan, while Mazda manufactured 71%, the highest ratio among the country’s major automakers. Fuji Heavy said it plans to sell 722,000 vehicles this year, with 8,000 more compared with its last forecast.
“The yen is still making corrections from a high level,” said Fuji Heavy Chief Financial Officer Mitsuru Takahashi. “From a manufacturer’s point of view, we should produce where the goods are sold.”