Suzuki Motor Corp. on Monday said its net profit dropped 4.7 percent in the April-December period from a year earlier and it also downgraded annual sales forecast due to the impact of a strong yen and a slump in India.
The Japanese maker of small cars posted a net profit of ¥40.62 billion ($530.3 million) in the nine month-period, down 4.7% from ¥42.61 billion in the same period a year earlier.
The profit and revenue decline was mainly due to slower sales in India and a sharp rise of the yen, Suzuki said, adding that it was also still struggling to recover from the impact of the March 11 earthquake and tsunami.
The floods dragged down production in Indonesia by about 37,000 motorcycles and in Hungary by about 13,000 cars, executive vice president Toshihiro Suzuki told a news conference.
Suzuki’s sales volume for the quarter declined 6 per cent from the same period last year to 512,140 units. Overseas sales dropped 19.2 per cent to 283,767 cars and those in Asia fell 26.4 per cent to 162,413.
For the full fiscal year through March, Suzuki kept its net profit forecast at Y50 billion and its operating profit forecast at Y110 billion. It lowered its revenue forecast to Y2.500 trillion from Y2.610 trillion.
Net sales are now expected to be 2.5 trillion yen, down 110 billion yen from the previous forecast.
The company also expects to pay 7 yen as year-end dividend.
($1 = 76.5850 Japanese yen)