Full-year financial results to 31 March 2013 for Suzuki Motor Corporation highlight the dramatically worsening position of its global motorcycle operations.
The company’s annual revenue from powered two-wheeler and ATV sales fell by 9.6 per cent to £1.5bn. This was mainly attributed to ongoing declines in European and Asian markets. A resultant operating loss from the sector of £77.7m was almost five times bigger than a £15.8m loss incurred during the previous 12 months.
In response to this lamentable situation, Suzuki qualified its results with the following statement: “In the motorcycle business, the Group will be aiming at recovering its presence in the market by uniting planning, technology and sales functions and by developing new products that suit market needs further. The Group will particularly be focusing on compact motorcycle business in Asia where growth potential is high, and at the same time, will be offering ASEAN-standard vehicles in wider areas, reducing cost by reducing the number of engines and engine integration and streamlining the development process. The Group will also be strengthening its line-up of middle and large-sized motorcycles.”
However, thanks to its increasingly successful car business, Suzuki’s overall performance was positive. Total revenue for the year rose by 2.6 per cent to £16.77bn. Operating profit was up by 21.2 per cent at £940.3m. Net profit jumped by 49.2 per cent to £522.9m.
For the new financial year, Suzuki is forecasting an 8.6 per cent revenue increase to £18.2bn, operating profit up by 3.8 per cent to £975.6m and net profit growing by 12 per cent to £585.4m.