Mexican Media Brands
Subaru Lowers Outlook as Sales, Earnings Drop
Subaru Inc. reports its net income in the first half of its fiscal year ended Sept. 30 fell 48% to 44.3 billion yen ($391 million).
#economics
Share
Subaru Inc. reports its net income in the first half of its fiscal year ended Sept. 30 fell 48% to 44.3 billion yen ($391 million).
Operating income for the period plummeted 74% to 55 billion yen ($485 million). Most of the decline is due to recalls of 530,000 cars in Japan that were improperly tested and 410,000 vehicles worldwide with engine valve springs that could break and cause the engine to stall.
Subaru reports its net sales revenue in April-September shrank 8% to 14.8 trillion yen ($131 billion), as worldwide unit sales fell 9% to 482,100 units.
Subaru lowered its full-fiscal-year outlook from its previous forecast in August. Recalls and costlier sales incentives are now expected to slash operating profit by 42% to 220 billion yen ($1.9 billion) and cut net income 24% to 167 billion yen ($1.5 billion).
The company anticipates that its unit sales for the fiscal year will slip 2% to 1.04 million vehicles. Net revenue is likely to dip 1% to 3.2 trillion yen ($28 billion).
RELATED CONTENT
-
On Urban Transport, the Jeep Grand Wagoneer, Lamborghini and more
Why electric pods may be the future of urban transport, the amazing Jeep Grand Wagoneer, Lamborghini is a green pioneer, LMC on capacity utilization, an aluminum study gives the nod to. . .aluminum, and why McLaren is working with TUMI.
-
On Quantum Navigation, EVs, Auto Industry Sales and more
Sandia’s quantum navi, three things about EVs, transporting iron ore in an EV during the winter, going underwater in an EV (OK, it is a sub), state of the UK auto industry (sad), why the Big Three likes Big Vehicles, and the future of logistics.
-
GM, Ford Evaluate Possible Economic Slump
General Motors and Ford say they have bolstered their cash reserves in case the trade war between the U.S. and China triggers a global recession.