Message from President

President and Representative Director Masanori KatayamaIsuzu Motors announced on May 11, 2016 its earnings results on consolidated basis for the fiscal year ending in March 2016.

[FY2016 Results]
In the fiscal year ending in March 2016, Isuzu unit sales in Japan decreased by 2,271 units or 3.1% to 70,529 units compared with the previous consolidated fiscal year. Overseas, Isuzu vehicle sales dipped 924 units or 0.2% from the previous year to 437,567 units due to a sales drop in emerging and resource-rich economies which is partially offset by strong sales in North America and other advanced economies.

Meanwhile, a model mix resulting in increased vehicle sales amount and sales growth in after-sales business helped us to increase net sales to 1927 billion yen, up 47.6 billion yen or 2.5% year-on-year. This comprises 693.1 billion yen posted for Japan, up 1.7% year-on-year, and 1233.8 billion yen for the rest of the world, up 3.0% over the previous year.

As for the operating performance, operating income edged up 0.3% year-on-year to 171.6 billion yen thanks to a lean cost structure achieved by cost reduction activities which more than offset high spending on R&D for future business growth under the growth strategy. Ordinary income came to 186.7 billion yen, down 0.4% year-on-year, and net income attributable to the parent company's shareholders, to 114.7 billion yen, down 2.0% from the previous year.

[Forecast for Consolidated Business Results in FY2017]
In FY2017, we expect demand in advanced countries - Japan, North America and Australia - will remain firm, while uncertainty over emerging and resource-rich economies will persist. Also, our profitability will inevitably be subject to an impact from wild currency swings.

Under these assumed circumstances, we plan to continuously invest in our growth strategy measures in FY2017 as we did the previous year, and aim to increase profits through the efforts for sales expansion in the Japanese market and after-sales business, further cost reduction activities, and optimized prices.
Based on the above, we forecast the consolidated business results for the year ending March 31, 2017 as follows: net sales of 1860 billion yen, operating income of 175 billion yen, ordinary income of 187 billion yen, and net income (attributable to the parent company's shareholders) of 115 billion yen.

We continue to seek your support and understanding more than ever.