Suzuki FY2008 Profit Sinks 66%

admin

Suzuki Motor Corp.'s fiscal year-end net income plummeted 65.8 percent on a 14.2 percent drop in sales.

Suzuki reported net income of ¥27.42 billion ($285.0 million) on sales of ¥3.004 trillion ($31.24 billion) for the year ended March 31, down from net income of ¥80.25 billion on sales of ¥3.502 trillion in the prior year. The OEM says reduced profits resulted from reduced sales, increased raw material costs and exchange rates.

"We are faced with the unprecedented critical situation," Suzuki leadership says. "The long-term economic slowdown and the reduced buying motivation of the consumers have led to a substantially reduced demand for the products of our group including motorbikes, automobiles and outboard motors."

Suzuki’s motorcycle sales for the year ended March 31 fell 23.2 percent to ¥454.35 billion ($4.72 billion) as a result of a "large" sales decline in North America and Europe as well as a change in exchange rates because of a stronger yen.

Suzuki forecasts net income of ¥5 billion on sales of ¥2.300 trillion for the year ending March 31, 2010.

The OEM warns that various factors, including a rapid change in demand, insufficient supply or price hikes for specific parts and raw materials, unstable economic conditions, revisions of import regulations and harder price competition, may rapidly change the product prices and purchase prices of its product. "There is no guarantee that such rapid price change does not last long," Suzuki leadership says, adding: "Rapid changes in product prices and purchase prices may adversely affect the performance of our group in any market where we conduct our businesses."

—Submitted by Guido Ebert