Big profits for Subaru

#hashtags: #Subaru #Fuji Heavy Industries

The maker of Subaru vehicles, Fuji Heavy Industries, reported a 41 percent boost in operating profit in the latest quarter, as the weak yen and a solid growth in sales helped the profits going way up. Advantageous exchange rates and good sales gave a big push to Fuji Heavy Industries’s gains. Global operating income has increased to 150,9 billion yen (1,26 billion dollars) in the company’s fiscal second quarter with a big 50,4 billion yen (420,9 million dollars) help from a depreciated yen. The yen’s decline against the dollar aids Japanese exports and increases the yen-dominated value of dollars earned overseas. An increasing global deliveries also has encouraged the good results, with sales of 247,000 cars in three months – up from 237,900 vehicles a year ago. Quarterly net income rocketed to 79 percent, from 60,8 billion yen (507,7 million dollars) to 109,0 billion yen (910,2 million dollars). Global revenue rose 17 percent to 836,2 billion yen (6,98 billion dollars), from 716,8 billion (5,99 billion dollars). The biggest market for Subaru was the North American one, with the US sales accounted for 61 percent of its total deliveries. In the quarter reported, US sale were 9,2 percent higher and rose to 150,200 vehicles. The targeted deliveries for the US are 600,000 units for the current calendar year and it would mean an eighth consecutive year of growth and a seventh straight year of record sales. For the current fiscal year ending in March 2016, Subaru predicts North American sales of 624,100 vehicles. For that target to be achieved, the company is increasing annual production capacity to 394,000 vehicles by the end of next year. As other car manufactures, by contrast, on the Japanese market the sales stumbled. Subaru’s deliveries went down by 13 percent to 38,500 cars, while in China sales dropped by 21 percent. Via Automotive News