Subaru owner sees earnings soaring on record US sales image

Fuji Heavy Industries, the Japanese conglomerate that owns the Subaru brand has seen a 50 percent jump in reported quarterly operating profit thanks to stellar US deliveries and the continuously favorable yen to dollar exchange rates.

The company announced that its operating income soared to 124.5 billion yen ($1.04 billion) in the company’s fiscal third quarter that ended on December 31, with no less than 40.6 billion yen ($338.5 million) coming as a gain from the depreciating yen. The yen’s decline against the dollar has continuously assisted Japanese exports and has lifted the yen-dominated value of dollars earned overseas. Additionally, the positive delivery results boosted the global volume, up 16 percent to 232,100 units during the three-month period of the quarter – climbing from 200,800 vehicles for the year-ago period. On the other hand quarterly net income slid 5.4 percent to 77.3 billion yen ($644.5 million), from 81.7 billion yen ($681.2 bilion). The negative result came as results from the previous year were artificially boosted by the sale of Fuji Heavy’s Polaris snowmobile subsidiary. Global revenue jumped 29 percent to 750.5 billion yen ($6.26 billion), from 582.9 billion ($4.86 billion).

The performance was almost entirely North America’s feat – with the US alone claiming around 64 percent of the global sales mix. During the quarter, US deliveries jumped 7 percent to 148,800 autos, while in Japan they dropped 6 percent to 34,300 autos. According to the latest company forecast, US sales for 2015 are expected to rise from the record figure of 513,693 units tallied last year to 540,000 vehicles – the seventh-straight record year.

Via Automotive News