Suzuki Motor Reports Strong First Quarter Revenue Amid Rising Raw Material Costs

TOKYO, Aug 05 (Pulse News Wire) – Suzuki Motor Corporation (7269.T) reported strong first quarter revenue of ¥4,007 billion, up 15.4% from the same period last year. Despite challenges posed by rising raw material costs due to Middle East tensions, operating profit reached ¥202.9 billion, marking a 10.5% increase compared to the previous year.

Financial gains from asset evaluations contributed to pre-tax quarterly income of ¥283.2 billion, up 10.5% year-over-year. Basic earnings per share rose to ¥95.17 from ¥52.88 in the prior year's quarter. The company attributed the growth primarily to favorable exchange rates, increased sales volumes, improved product mix, cost reductions, and lower fixed expenses. However, higher raw material prices offset some of the gains, leading to a revised forecast for the fiscal year.

Suzuki now expects total revenue of ¥6 trillion, a 1.5% increase from the previous estimate. Operating profit is projected to reach ¥158 billion, down 5.3% from earlier forecasts due to ongoing geopolitical risks and fluctuating raw material prices. For the full fiscal year ending March 31, 2027, Suzuki anticipates basic earnings per share of ¥105.50, reflecting continued efforts to enhance operational efficiency despite potential uncertainties. A detailed analysis of cash flow showed a net increase in cash and equivalents of ¥450.3 billion during the quarter, driven mainly by reduced spending on tangible assets and financial investments.