Suzuki raises profit forecast on strong India, Europe sales

Japanese small car major Suzuki Motor Corp today raised its annual operating profit forecast on the back of strong vehicle sales in India and Europe.
The carmaker, whose Indian arm Maruti Suzuki commands over 47 per cent share in the passenger vehicles market there, now sees operating profit grow 2.4 per cent to 200 billion yen in the fiscal from 195 billion yen in the previous fiscal.
SMC had earlier pegged the annual operating profit for the ongoing fiscal to be at 180 billion yen, a decline of 7.8 per cent.
The consolidated results for FY2016 first six months were better than the previous forecast mainly because of improved result in India and Europe, and recording of 46.8 billion yen of gains on sales of investment securities, the company said in a statement.

"The revision has been made to the previous business forecast for FY2016, as a result of reflecting the difference for FY2016 first six months and reviewing the figures such as sales units and foreign exchange rates," it added.
During the second quarter, the consolidated net sales of the company declined by 56.5 billion yen to 1,499.0 billion yen as compared to the corresponding period of the previous fiscal year.
The overseas net sales decreased by 53.1 billion yen to 1,002.4 billion yen year-on-year, mainly owing to decrease in automobile sales in Indonesia and Pakistan, and the impact of the exchange rate, despite increase in automobile sales in areas including India and Europe, it added.

Reports said Suzuki planned to invest about 100 billion yen ($970 million) to set up a second production line at its upcoming plant in Gujarat, where it is in the process of setting up the first unit.