Fuji Heavy sees 49% hike in net profit for current fiscal year

Article by Anita Panait, on November 1, 2013

Fuji Heavy Industries Ltd. has revised upward its profit and sales forecasts for the full fiscal year ending March 14, 2014.Fuji Heavy, which builds Subaru cars, now expects a 49-percent hike in its net income for the fiscal year to JPY178.0 billion ($1.81 billion) from JPY119.6 billion ($1.22 billion) a year earlier. The new profit forecast is on the back of an expected JPY2.3 trillion ($23.4 billion) in revenues in the fiscal full-year ending March 14, 2014, reflecting a 20-percent rise from JPY1.913 trillion ($19.48 biilion) in the year before.

Fuji Heavy previously expected to post JPY2.08 trillion ($21.18 billion) in revenues for the current fiscal year. The company also expects it its global sales for the fiscal year to surge 11 percent 807,300 units, from 724,500 in the previous fiscal year, boosted by soaring US demand for Subaru cars.  It had expected global sales or just around 751,500 units.

Subaru’s US sales has accounted for more than half its global volume and is still expected to drive the company’s global growth for this fiscal year. In fact, the carmaker expects to post a 22-percent rise in US sales to 434,800 units in the fiscal year. According to President Yasuyuki Yoshinaga, the company’s improved outlook builds on a more favorable yen-dollar exchange rate as well as booming US demand.

The company expects its sales in the US to grow for sixth consecutive years and post its fifth year of record results. Yoshinaga said that dealers have assured him that the company “can keep on going next year" saying that “there's no risk."

The yen's depreciation against foreign currencies is expected to boost Fuji Heavy's full-year operating profit by JPY133.4 billion ($1.36 billion). The yen-to-dollar exchange is expected to account for almost 95 percent of that windfall. [source: Subaru]

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