In spite of the problems faced because of the March 11 natural disaster than struck Japan home to leading global auto manufacturers, the recent labour strife’s and a slowing demand rate in its significant Indian market, Suzuki Motor Corp has gone ahead and projected a positive outlook for its annual operating profit.
The fourth largest auto manufacturer in Japan, Suzuki estimates an 110bn yen or $1.37bn in operating profits for the fiscal year that will end on March 2012. The manufacturer of compact cars and the popular Swift estimates a 50bn yen net profit, an increase of 10.7% compared to the last fiscal.
The company posted a decrease of 51% in their operating profits for the fourth quarter at 14.48bn yen or $180mn citing the disruption caused in the auto parts supply chain because of the 9.0 magnitude earthquake. The company’s majority stake in the Indian Maruti Suzuki unit faced disruption in production activities at their Manesar plant because of the 13 day long strike that ended last week. The strike led to a loss of $90mn. The head of Suzuki, however, said that the loss caused by the strike was negligible in a market where they sell about 1.2mn units per annum. Suzuki has a 54.2% stake in the company.