Suzuki triples profits forecast

Japanese carmaker Suzuki Motor has tripled its forecast for full year operating profit, after reporting better-than-expected six-month figures.

Its strength in the Indian market has meant it has performed better than its rivals, which rely more on US sales.

It reported six-month net profits of 12.5bn yen ($139m; £85m) which was 63% down on the same period last year.

Suzuki is now predicting full year net profit of 15bn yen, up from the 5bn yen it forecast in May.

Last week, India’s biggest carmaker Maruti Suzuki India, of which Suzuki owns a major stake, reported its quarterly profit had almost doubled.

But Suzuki’s boss has warned of an uncertain outlook when government scrappage schemes end.

“It’s doubtful whether these scrappage incentives would switch smoothly into real demand,” said chief executive Osamu Suzuki.

Meanwhile Toyota subsidiary Daihatsu said its net profit fell by 60% in the six months to September, to 6.8bn yen.

However it also boosted its net profit forecast for the full year to 13bn yen, up from the previous 8bn yen figure.

And Fuji Heavy Industries, the maker of Subaru vehicles, posted a net loss of 21.7bn yen for the six months to September.

However the firm – also part owned by Toyota – also arrowed its net loss forecast for the financial year to 25bn yen from 55bn yen.

Nov 2, 2009MTI