Suzuki’s operating profit dropped by 2.8% in the third quarter

Article by Christian Andrei, on February 7, 2012

Suzuki Motor Corp.’s operating profit for the last quarter dropped by 2.8% as it was affected by the slowdown in Indian sales. It chose to keep its forecast for its annual profit even with the impact from the stronger yen and the flooding in Thailand. Five analysts polled by Thomson Reuters had estimated an average profit of 23.8 billion yen, which is comparable to its operating profit for the third quarter (October-December) of 23.0 billion yen ($300 million). Its net profit decreased by 29% to 8.61 billion yen, according to calculations based on its nine-month results.

Suzuki lowered its revenue forecast by 110 billion yen to 2.50 trillion yen for the year to March 31, due to the yen's strength and the disruption from the Thai floods last quarter. In a news conference, executive vice president Toshihiro Suzuki said that the floods had made production in Indonesia decrease by around 37,000 motorcycles. Sales in Hungary also fell by about 13,000 cars.

Suzuki retained its profit guidance due to cost-cutting efforts, projecting operating profit of 110 billion yen, a 2.9% increase from 2010/11. This figure is at 119 billion yen, according to the estimate of 21 analysts.

Last January, subsidiary Maruti Suzuki India Ltd. posted a quarterly profit decline that was worse than anticipated, reflecting sluggish sales and weaker rupee.

However, it gave assurances that the worst is over, increasing Maruti's stock price by over 6% on the day. Analysts say that Suzuki will benefit from a shift towards monetary easing in India (its biggest market) wherein car sales dropped due to increasing interest rates.

Topics: suzuki, profit

If you liked the article, share on:


Login or Create new account to add a comment!


We’re all excited as the year comes to an end especially as there are several things we’ve highly anticipated. Like always, the car industry has something new to offer; that’s...
by - October 28, 2016
Fuel economy is now an everyday term we hear and read in the automotive world. Just recently, some car manufacturers got into serious trouble for claiming false statements with regard...
by - October 28, 2016
More than three decades ago, the DeLorean DMC-12 was produced by the DeLorean Motor Company. However, production was stopped due to issues within the company. The car itself was decent...
by - October 27, 2016
Tesla is making sure that all models under production will receive the necessary advanced hardware that will allow them to be autonomously driven. The fitment of these advanced hardware to...
by - October 27, 2016
Wondering how fast the 2017 Chevrolet Camaro ZL1 in actual driving? To provide customers a good idea on how fast the 2017 Camaro ZL1 could really get, Chevrolet recently had...
by - October 27, 2016