Subaru maker posts 27% crash in first-half profit image

For the first half of the financial year, Fuji Heavy Industries Ltd., the maker of Subaru-brand vehicles, reported a net profit down with 27% compared to same period last year. The drop was due to manufacturing disruption caused by March earthquake in Japan, the weakness of the yen, the sales diminishing and as well due to the failure of obtaining Chinese approval for realizing a joint venture.

According to the statements, Fuji Heavy Industries reported a decreasing net profit of ¥32.75 billion in the March – September period, from ¥ 44.57 billion in 2010. Sales were also down with 19%, to ¥ 655.02 billion from ¥ 803.99 billion in the previous year.

For the second half of the fiscal year through March, the company raised its net profit estimation to ¥ 36 billion from ¥ 35 billion, as an attribute of its efforts to reduce costs

According with the mid-term goals, the company’s aim is to achieve annual global sales of 900,000 units until March 2016. For the current fiscal year, the company estimated an increase in its vehicle sales to 645,000 vehicles, with 13,000 units more than previous forecast, while de sales estimation remained unchanged at ¥1480 trillion.