SUZUKI PROFITS RISE 28%
November 2 2006.
Suzuki has announced net profit for the first half ended September 30 rose 28% on year, boosted by growing demand for its small cars in overseas markets.
The maker of small cars and motorcycles posted a group net profit of Y39.46 billion in the interim period, up from Y30.94 billion a year earlier.
Its group sales shot up 16% to Y1.482 trillion from Y1.273 trillion. Its operating profit rose 19% to Y67.83 billion.
Brisk demand overseas played a major role in underpinning sales and profitability at Suzuki, whose fuel-efficient vehicles have attracted consumers amid soaring oil prices.
The upbeat performance prompted the company to revise up its earnings outlook for the fiscal year ending March.
It lifted its group net profit outlook to Y72 billion from Y66 billion. It also raised its group sales forecast to Y3 trillion form Y2.8 trillion for the full business year.
Suzuki loosened its capital partnership with U.S. auto giant General Motors Corp. earlier this year. GM sold a 17% stake in the Japanese automaker and now holds 3%.
On the other hand, Suzuki expanded ties with Nissan in their collaboration of supplying products to each other.
Suzuki's earnings are based on Japanese accounting standards.

Source: Nikkei.