SUZUKI PROFITS UP
August 3 2005.
Suzuki has reported a 2% increase in group net profit to 16.8 billion yen, citing higher sales, particularly those of motorcycles.
With the profit rise, the automaker apparently beat its internal earnings estimate for the first quarter of fiscal 2005. But it left its full-year profit forecast at 48 billion yen, down 21%.
Sales climbed 9% to 637.8 billion yen in the three months through June. Motorcycle sales in unit terms increased 12% in Japan and 19% overseas, with particularly strong growth recorded in the U.S., Europe and Southeast Asia. Automobile sales went up 8% to 492,000 units, lifted by solid sales of minicars and subcompacts at home and generally strong sales in such markets as India and Indonesia.
Suzuki's profit was reduced by roughly 11 billion yen because of higher depreciation and R&D charges. But this was more than offset by the sales growth and some 12 billion yen of production cost cuts.
The company also saw its use of the foreign exchange rate of 108 yen to the dollar -- which represented a 1 yen advance in the yen -- work to decrease profit. But the yen's decline against the euro helped compensate for this.

Source: The Nihon Keizai Shimbun