Mexican Media Brands
Suzuki Predicts $1.3 Billion Loss as Sales Slide
Suzuki Motor Corp. warns that slumping sales in India will cut its net profit 22% to 140 billion yen ($1.3 billion) in the current fiscal year ending March 31.
#economics
Share
Suzuki Motor Corp. warns that slumping sales in India will cut its net profit 22% to 140 billion yen ($1.3 billion) in the current fiscal year ending March 31.
The new outlook reverses Suzuki’s previous forecast that its annual net profit would grow 12% to 200 billion yen ($1.9 billion) this year.
The company’s Maruti Suzuki venture in India normally contributes about 40% of total net income. But the partnership’s monthly unit sales have trailed year-earlier volumes since January.
Suzuki now anticipates that its sales revenue in the current fiscal year will drop to 3.5 trillion yen ($32.4 billion), down 400 billion yen ($3.7 billion). Revenue in fiscal 2018 grew 3% to 3.9 trillion yen.
Suzuki’s net income slid 17% to 179 billion yen in the 2018 fiscal year. Results that year were dragged down by a vehicle fuel economy and exhaust emission scandal in Japan.
RELATED CONTENT
-
VW Warns of Higher Costs to Develop EVs
CEO Herbert Diess says the €20 billion ($23 billion) Volkswagen AG has budgeted to electrify its entire vehicle lineup won’t be enough to meet that goal.
-
China and U.S. OEMs
When Ford announced its 3rd quarter earning on October 24, the official announcement said, in part, “Company revenue was up 3 percent year over year, with net income and company adjusted EBIT both down year over year, primarily driven by continued challenges in China.” The previous day, perhaps as a preemptive move to answer the question “If things are going poorly in China, what are you doing about it?, Ford announced that it was establishing Ford China as a stand-alone business unit.
-
Mazda, CARB and PSA North America: Car Talk
The Center for Automotive Research (CAR) Management Briefing Seminars, an annual event, was held last week in Traverse City, Michigan.