Message from President

President and Representative Director Masanori KatayamaIsuzu Motors announced on November 7, 2016 its financial results for FY2017 H1 and the revised financial forecast for the fiscal year ending in March 2017.

[FY2017 H1 Results]
In the cumulative consolidated second quarter, Isuzu vehicle sales in Japan increased on firm demand by 3,899 units or 11.3% to 38,359 units over the same period last year. Overseas, Isuzu vehicle sales fell 15,336 units or 7.0% year-on-year to 204,700 units due mainly to a sales drop in emerging and resource-rich economies.

With regard to other products, the sales amount of parts for overseas production fell by 25.3 billion yen or 52.8% year-on-year to 22.6 billion yen. Sales amount of engine components declined 2.7 billion yen or 5.6% to 46.1 billion yen from the same period last year. Meanwhile, sales amount from other rose 2.7 billion yen or 1.5% to 181.1 billion yen, compared to the same period last year.

Consequently, net sales amounted to 908.1 billion yen, a decrease of 62.9 billion yen or 6.5% from the same period last year. This comprises 377.6 billion yen posted for Japan, up 13.0% year-on-year, and 530.4 billion yen for the rest of the world, a decrease of 16.7% year-on-year.

In spite of the increased vehicle sales in Japan, the decreased sales in overseas markets and the impact of the yen's appreciation against other currencies adversely impacted the Company's profits. Isuzu posted 68.4 billion yen in operating income, a decrease of 20.7% year-on-year, 72.3 billion yen in ordinary income, a 26.7% year-on-year drop, and 38.8 billion yen in net income attributable to the parent company's shareholders, a decline of 27.0% from the same period last year.

[Forecasts for FY2017 Consolidated Business Results]
Isuzu revised its financial forecast for the full year ending in March 2017. The decision was based on the financial results of the cumulative second quarter, the revised projection of the foreign exchange rate, and shipment plans for different markets according to their latest economic trends.

We expect the robust demand to continue in the second half of this fiscal year in advanced countries, namely, Japan, North America and Australia. Among emerging markets, the strong demand is likely to continue in the entire ASEAN markets, and the other emerging markets will also see Isuzu sales growth in the second half because temporary correction and contraction of shipment in the Middle East and Africa, which brought down Isuzu sales until the end of the 2nd quarter, should have limited impact on the sales in the 2nd half of this fiscal year.
In spite of the expected sales growth in advanced countries - Japan, North America and ASEAN markets, and aftersales business, Isuzu now forecasts its profits for the fiscal year to March 2017 to be lower than previously projected. This is mainly because of the impact of the yen's sharp appreciation.

Given uncertainty over demand in emerging markets, however, we at Isuzu will vigorously work to achieve tasks ahead of us for the next fiscal year such as ensuring to fully enjoy the fruit of cost-cutting efforts.
Based on the above, Isuzu now forecasts 1860 billion yen in net sales, 150 billion yen in operating income, 153 billion yen in ordinary income and 90 billion yen in net income attributable the parent company's shareholders for FY2017.

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