In half-year results to September, Suzuki’s motorcycle division has safely escaped red ink in the same period of 2020 with sound progress. But sales in some key developed markets took a spanking. BDN financial editor Roger Willis reports.
Revenue recovered by 33.6% to £779m and operating profit bounced back to £45m, from a £24m loss. Set against the equivalent six months in pre-Covid 2019, turnover was 5.9% down but earnings were 305.9% higher.
Strong revenue performance in emerging markets claimed much of the credit. Asia stacked on 54.2% to £373m. Other regions were 60.7% up to £142m. The developed world was less fruitful. Europe added just 5.3% to £104m. A better model mix led by the new Hayabusa and GSX-S1000 variants kept it on the straight and narrow. But North America was 3.8% down to £84m. Japan rose by 13.7% to £76m.
Worldwide volume grew by 15.7% to 781,000 bikes. Asia dominated, with a 20.1% improvement to 617,000 of them. Notable contributors were China and India. The former posted a 12.9% increase to 223,000, while the latter boasted a 36.4% rebound to 258,000. The Philippines also did well, 27.8% up to 72,000. Vietnam was the prominent loser, 19% down to 8000.
European markets shrank by 24.1% to 18,000. North America lost 45.9% at 17,000. Japan redeemed itself with an 11.7% rise to 30,000.
Citing parts shortages and Covid-related production delays, Suzuki has slightly reduced its full-year motorcycle sales forecast to 1.633 million, a 6.4% annual rise. Europe is likely to be flat, on 31,000.
Yen-sterling currency translation at forex rates on 11 November Â