Message from President

President and Representative Director Susumu Hosoi  Isuzu Motors announced on Nov.5, 2014 its financial results for FY2015 cumulative 2nd quarter and revised its forecast for the FY2015 full-year results.

(FY2015 Cumulative 2nd Quarter Results)

  Isuzu vehicle sales in Japan during the cumulative 2nd quarter of this fiscal year remained strong thanks to the increased demand since this period saw an investment surge in Japan. On the other hand, Isuzu unit sales outside Japan dropped year-on-year due to the sluggish Thai market resulting in a decrease in the total sales volume of trucks and pickups compared to the same period last year. Yet, Isuzu increased the volume of overseas truck shipment because of brisk truck sales in the Middle East and Africa.

  With regard to earnings results for the cumulative 2nd quarter, the increased truck volume helped raise net sales by 6.9 billion yen or 0.8% year-on-year to 882.1 billion yen. For all the saving from the material cost reduction efforts, profits decreased due chiefly to a drop in sales revenue in Thailand and an increase in expenditure to execute the initiative for Isuzu's growth strategy for its business expansion in the future. Specifically, operating income fell 13.3 billion yen or 14.7% year-on-year to 77.0 billion yen, ordinary income came to 84.7 billion yen, a decrease of 11.9 billion yen or 12.4% year-on-year and net income declined 7.2 billion yen or 12.6% year-on-year to 49.6 billion yen.

(FY2015 Full Year Forecast)

  Isuzu reviewed its sales forecasts for markets where it is doing business and has revised its estimate for the FY2015 net sales while keeping original forecasts for other income items unchanged.

  We anticipate, despite the sluggish sales in Thailand, the export volume from Japan and Thailand of both commercial vehicles and light commercial vehicles to increase under the revised plan thanks to the effect of the enhanced overseas distribution business, for which Isuzu has been striving as one of the tasks set forth under its Mid-Term Business Plan. All in all, we project an increase in net sales for FY2015.

  For FY2015 2nd half results, we are going to spend as much expenditure for our growth strategy in the 2nd half as in the 1st half. Still, we plan to increase the 2nd half profits year-on-year since such expenditure is to be absorbed by the increased profitability from the net sales growth and the saving from cost reduction efforts.

  Consequently, Isuzu forecasts net sales of 1,850.0 billion yen, operating income of 165.0 billion yen, ordinary income of 175.0 billion yen and net income of 100.0 billion yen for the full year results for FY2015 ending March 2015.

  While we are developing a next mid-term business plan and fine-tuning its details, we will continually and expediently execute the initiative toward our growth strategy: "Strengthening CV business for emerging markets", "Stabilizing Japan business" and "Enhancing and expanding LCV business".

  In order to achieve the above, we are building the three core business organizations in "Japan, ASEAN and Thailand" plus two support footholds in "China and India", laying functions of engineering, purchasing and manufacturing in these countries for global business expansion.

  On sales and marketing front, we are working hard for the expansion and the enhancement of sales/marketing business and the fixed operation, which generates profits from after-sales and other business built on Isuzu units in operation, for shoring up our sales organizations. Going forward, Isuzu will further widen its scope of activities and business outside Japan to boost its marketing capability.
  We would greatly appreciate more of your understanding and support than ever for Isuzu Motors Limited.

(November 5, 2014)