Suzuki Motor Q3 operating profit up 5.5% as sales rise
Reuters
Automotive News / February 1, 2006 - 9:00 am
TOKYO -- Japanese compact car maker Suzuki Motor Corp. posted a 5.5 percent rise in quarterly operating profit on brisk vehicle sales worldwide, data showed on Wednesday, and it reiterated its forecast for a slight improvement in full-year earnings.
Operating profit at Suzuki, held one-fifth by General Motors, was 28.98 billion yen ($247.4 million) for the October-December period, according to calculations by Reuters based on the firm's nine-month results.
That was basically in line with an average forecast of 29.07 billion yen in a survey of four brokerages by Reuters Estimates.
Net profit rose 5.0 percent to 16.96 billion yen on revenue of 679.52 billion yen, up 17.9 percent.
Suzuki's performance puts it within easy reach of its projections for the year to March 31, especially in light of its assumption that the dollar and euro would average 104 yen and 122 yen, respectively, during the final quarter, versus actual rates of around 117 yen and 142 yen.
The maker of the Swift compact car has forecast an operating profit of 108 billion yen for the full year, which would be up 0.4 percent and mark the sixth straight year of record profits.
For the first nine months, the profit came to 85.84 billion yen, up 5.1 percent.
Analysts expect Suzuki, which has been boosting sales of motorcycles and cars in Asia and Europe, to beat its typically conservative forecast, with an average of 17 brokerages putting profit at 115 billion yen.
Japanese truck maker Isuzu Motors Ltd., also part of the GM group, said its three-month sales and profits grew. But for April-December, operating profit fell 7.6 percent to 59.30 billion yen and net profit sank 16 percent to 42.85 billion yen due to increased spending on research and development.
Isuzu, owned 8 percent by GM, said nine-month revenue grew 4.8 percent to 1.134 trillion yen.
With losses piling up at the U.S. auto giant, speculation is rife that GM could sell some or all of its stake in the two Japanese auto makers. Last year, GM sold off its entire 20 percent stake in Fuji Heavy Industries Ltd., the Japanese maker of Subaru cars, citing an unfruitful alliance.
Shares in Suzuki rose 4.0 percent during the three months to December, underperforming a 19 percent jump in the Nikkei average and 12 percent gain in the transport sector subindex. Isuzu gained 7.7 percent.
Before the announcements, Suzuki ended down 1.67 percent at 2,350 yen and Isuzu fell 1.42 percent to 418 yen, in line with a broad-based drop on the Tokyo Stock Exchange.
