Fuji Heavy posts $716 million net income for April-December 2010

Article by Christian Andrei, on February 8, 2011

Due to increasing vehicle sales overseas, Fuji Heavy Industries Ltd. (the maker of Subaru-brand vehicles) rose to profitability in the April-December period. Fuji Heavy, which makes automotive and aerospace products, reported a net income of 58.4 billion yen (about $716 million) for the first nine months of its 2011 fiscal year – a big change from the 15.2 billion yen loss it posted for that period last year.

Fuji Heavy Industries’ fiscal year ends on March 31. In addition, net sales also rose 16% to 1.17 trillion yen, from 1.01 trillion yen for the same period last year.

Subaru made up over 90% of Fuji Heavy’s net sales. The overseas sales of Subaru contributed to offsetting the strength of the yen, which made Fuji Heavy Industries lose 26.3 billion yen on currency exchange just in the third quarter.

Fuji Heavy predicted a currency exchange loss of 38.4 billion yen for the entire fiscal year. North American distributor Subaru of America expects sales to go up by 27% from its previous fiscal year, when the company had net sales of $5.32 billion.

However, income will decrease by more than half due to the yen’s rising value. Subaru of Indiana Automotive Inc. will continue to be just as profitable as the previous year with $56 million in net income, even if the company forecasts sales to go up by 68% during that period to $3.79 billion.

Subaru’s Legacy, Outback and Tribeca models are produced on one line at its Lafayette, Ind., plant. A second line rolls out the Toyota Camry. Toyota holds a 16.5% shareholder stake in Fuji Heavy Industries. [via autonews - sub. required]

Topics: subaru, sales

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