Suzuki Announces Financial Results for FY2014 First Quarter (April 2014 to June 2014)

- Asia decreases income despite increased sales and income for the first quarter overall- Forecasts for the operating results remain unchanged due to grim outlook in Japan, Thailand, Indonesia, etc.  

 

 

1. Outline of Financial Results for FY2014 First Quarter (April 2014 to June 2014)

The consolidated net sales of the first quarter (April 2014 to June 2014) increased by ¥34.6 billion (5.1%) to ¥710.4 billion compared to the corresponding period of the previous fiscal year. The Japanese domestic net sales increased by ¥15.8 billion (6.6%) to ¥256.0 billion year-on-year mainly owing to accumulated back orders from last-minute demand ahead of the hike in the rate of consumption tax. The overseas net sales increased by ¥18.8 billion (4.3%) to ¥454.4 billion year-on-year. Although it decreased in Asia and North America, increase in Europe contributed to the overall increase.
In terms of the consolidated income, the operating income increased by ¥6.8 billion (15.5%) to ¥50.9 billion year-on-year. Although it decreased in Asia such as in Indonesia and Thailand, increase in markets such as Japan and Europe contributed to the overall increase. The ordinary income increased by ¥12.1 billion (25.7%) to ¥59.3 billion year-on-year. The net income increased by ¥10.5 billion (38.8%) to ¥37.5 billion year-on-year partly owing to the reduction in the rate of corporate tax in Japan.

 

2. The Operating Results by Segment

In the automobile business, the Japanese domestic net sales increased year-on-year owing to accumulated back orders of models such as the Hustler from the end of the previous fiscal year. The overseas net sales
increased year-on-year owing to the increase in Europe. Consequently, the net sales of the automobile business increased by ¥38.2 billion (6.5%) to ¥629.0 billion year-on-year. The operating income increased by ¥2.5 billion (5.8%) to ¥47.3 billion year-on-year. Although it decreased in Asia such as by the increase in facility investment and the impact of the local currency depreciation in India and Indonesia, and large decrease in automobile sales in Thailand, increase in markets such as Japan and Europe contributed to the overall increase in the operating income.
In the motorcycle business, the net sales decreased by ¥4.9 billion (6.9%) to ¥65.6 billion year-on-year mainly owing to decrease in sales in Asia. The operating loss of ¥2.7 billion in the corresponding period of the previous fiscal year turned into the black with an operating income of ¥1.0 billion, partly owing to the sales of large-displacement models which were exported in the previous fiscal year and were stocked overseas.
In the marine and power products, etc. business, the net sales increased by ¥1.3 billion (8.4%) to ¥15.8 billion year-on-year mainly owing to the increase in sales of outboard motors in Europe. The operating income increased by ¥0.6 billion (31.8%) to ¥2.6 billion year-on-year.
As for the operating results by geographical areas, although income in Japan, Europe, and other areas increased, the operating income in Asia decreased by ¥4.8 billion (24.3%) to ¥15.1 billion year-on-year mainly owing to decrease in income in Indonesia and Thailand.

3. Forecasts for the Consolidated Operating Results-Full Year

As for forecasts for the consolidated operating results, although the consolidated operating results of the first quarter increased year-on-year, the Group has decided to keep its previous forecasts unchanged due to the impact of recoil reduction of last-minute demand ahead of the hike in the rate of consumption tax in Japan, and grim overseas automobile sales and financial outlook such as in Indonesia and Thailand.
The Group will work as one to reform in every field to accomplish more than the below forecasts for the consolidated operation by pursuing the business activity.

Forecasts for the consolidated operating results-Full Year
Net Sales	¥3,000.0 billion (up 2.1% year-on-year)
Operating Income	¥188.0 billion (up 0.1% year-on-year)
Ordinary Income	¥198.0 billion (up 0.1% year-on-year)
Net Income	¥115.0 billion (up 7.0% year-on-year)
(Foreign Exchange Rate)	¥100/US$
	¥135/€
	¥1.65/Indian Rupee
	¥0.85/100 Indonesian Rupiah
	¥3.10/Thai Baht