Suzuki Motor Corp on Thursday raised its net profit forecast for the current financial year to 100 billion yen ($ 1 billion) because of a weaker yen and strong sales in Japan and other Asian countries, the carmaker said Thursday.
In May, Suzuki projected a net profit of 90 billion yen for the year to the end of March 2014.
The carmaker also revised up operating profit outlook for the year to 165 billion yen from 150 billion yen estimated in May, while maintaining sales forecast at 2.8 trillion yen.
Suzuki posted a net profit of 27 billion yen in the April-to-June quarter, up 10.5 per cent from 24.5 billion yen in the same period last year.
The carmaker also logged an operating profit of 44.1 billion yen in the April-to-June period, up 23.7 per cent from 35.6 billion yen a year ago, while sales were up 4.8 per cent to 675.8 billion yen.
Suzuki’s net profit in the previous financial year that ended in March rose 49.2 per cent from a year earlier to 80.4 billion yen, thanks to the yen’s depreciation and sales in Asia, including Japan.
A weaker yen makes Japanese-made products cheaper overseas, and improves repatriated earnings.
Suzuki was to spend 100 billion yen on a new auto assembly plant and an engine plant in the suburbs of Jakarta to meet growing demand in Indonesia, its second such factories in the country, the Kyodo News agency reported Sunday, citing unnamed company officials.
The carmaker currently produces some 150,000 units of small cars and commercial vehicles annually in Indonesia.