Suzuki Motor announced on November 10 that it has lowered its pretax profit forecast for the fiscal year ending March 2027, mainly because rising raw material costs are expected to offset gains from higher vehicle sales.
The company cut its full-year pretax profit forecast from 720 billion yen to 690 billion yen, a decline of 5.6% compared with the previous fiscal year. As a result, Suzuki Motor shares listed in Tokyo fell 3.4% to 2,219.5 yen as of 13:31 Beijing time.
However, Suzuki kept its full-year operating profit and net profit guidance unchanged, forecasting 540 billion yen and 420 billion yen respectively, down 13.3% and 4.4% year on year.
On sales, the company raised its full-year global vehicle sales forecast to 3.7 million units, an increase of 122,000 units from its previous estimate and up 11.5% year on year, mainly driven by growing demand in the Indian market.
Financial results showed that in the first half of the fiscal year ended September, Suzuki's revenue rose 19.4% year on year to 3.42 trillion yen, operating profit increased 5.5% to 291.6 billion yen, and net profit attributable to shareholders of the parent company grew 31.6% to 253.7 billion yen.
The company said improved profitability across regions in the first half partially offset the impact of higher raw material costs.
Comments