Suzuki and Mazda hiked their annual profit forecasts

Article by Christian A., on August 29, 2010

As these Japanese carmakers are experiencing higher demand and have been successful at cutting costs, Suzuki Motor Corp. and Mazda Motor Corp. both raised their annual profit forecasts.

Automakers all around the globe have cut fixed costs and boosted production efficiencies to cope with the global economic slowdown. Government incentives also boosted the sales of fuel-efficient cars.

Suzuki, owned 19.9% by Volkswagen AG due to a deal made in December, has profited from strong sales in India's fast-growing market, where it is the top player through subsidiary Maruti Suzuki.

For the entire year of 2010 to March, Suzuki raised its operating profit outlook to 50 billion yen ($558.2 million) from 40 billion yen. However, this figure falls short of the consensus of 66 billion yen from 14 analysts surveyed by Thomson Reuters I/B/E/S/.

A Suzuki spokesman said that the company has a very cautious outlook for the January-March quarter due to concerns related to the yen rate and an unclear economic outlook."

The spokesman added that it considers the heavy reliance on India's market as a risk. Suzuki, which sells the popular Swift and Alto hatchback cars, reported a 17.99 billion yen ($201 million) operating profit for October-December, compared with a 5.78 billion yen profit a year earlier. This is actually roughly in line with market expectations.

If you liked the article, share on:

Topics: suzuki, mazda, profit

Comments

Recommended

It has been nearly eight years since Toyota entered a new era of sports cars when it officially unveiled the production version of the Toyota 86 – also known as...
by - February 27, 2019
The new Audi TT RS – yes, the top version of the German carmaker’s facelifted TT model series – is now officially here. If you could remember, the range-topping TT...
by - February 18, 2019
Nearly half a year ago when McLaren Automotive unveiled the McLaren 600LT Coupe, the British carmaker is now introducing a version that lets its passengers enjoy the thrill of an...
by - January 25, 2019
German carmaker Volkswagen is now making the latest evolution of the new Volkswagen Golf GTI -- the new Golf GTI TCR. First unveiled as a concept at the annual GTI...
by - January 24, 2019
It has been three and a half years since BMW unveiled the sixth generation of the BMW 7 Series. Thus, it is really about to give the 7 Series a...
by - January 17, 2019