Suzuki Motor Corporation’s motorcycle business continues on its recovery path, but not very fast. BDN financial editor Roger Willis reports.
Total turnover spanning the first six months of its current fiscal year to the end of September rose by just 2.2% to £970.8m. Operating profit was 5.8% up to £87.3m and operating margin cruised at 9%.
Revenue from Asia as a whole was the biggest contributor, improving by 4.6% to £484.3m. Within that, India was 27.9% up to £307.8m. But other Asian markets retreated by 20.5% to £176.3m. Europe put on 19.8% to £143.2m. But North America was 12.8% down at £125m. The Japanese domestic market fell by 16.7% to £59.5m.
Suzuki’s overall production during the period increased by 1.1% to 980,000 units. Most notable figure was a 27% rise to 484,000 units from its wholly-owned Indian motorcycle and scooter subsidiary. Machines produced in various other Asian factories declined by 15.9% to 399,000 units. Japanese domestic output was 3.6% down to 53,000 units.
Global sales slipped slightly by 0.8% to 958,000 units. India was star of the show, 17.8% up at 413,000 sold. Asia, excluding India, slumped by 13.4% to 382,000. Within that, China was 6.7% down to 229,000 and the Philippines dropped by 19.1% to 80,000. Among emerging markets elsewhere, Latin America fell by 10.4% to 91,000. In developed markets, European recovery stood out, 31.4% up to 23,000. Japan was 9.9% down to 22,000 and North America sank by 10.9% to 17,000.
The Japanese are keen on forecasts. But these are usually a moveable feast. Its full-year production estimate peaked in May on 1.971 million bikes, was revised downwards in August to 1.942 million and changed again in November for this half-year results statement. It currently stands at 1.889 million. If that figure is still set in stone by 31 March 2024 , which is unlikely, the brand will have reduced year-on-year shipments by 1.3%.
Similarly, unit sales forecasts leap about. So far, they’ve gone from 1.941 million in May to 1.919 million in August and then 1.880 million in November — equating to notional 1.1% annual growth and hardly burgeoning confidence.
Yen-Sterling currency translation at forex rates applicable on 7 NovemberÂ