Message from President

President and Representative Director Masanori KatayamaOn November 6, Isuzu Motors announced the consolidated financial results for the first half of FY 2018 ending March 31, 2018 and the revision on the full-year consolidated financial forecast.

[Results for the first half of FY 2018 ending March 2018]
In the current fiscal year's first six months ended on September 30, 2017, vehicle unit sales in Japan decreased by 1,199 units (3.1%) compared with the same period last fiscal year to 37,160 units. Unit sales outside Japan of trucks and pick-up trucks combined fell by 4,936 units (2.4%) year-on-year to 199,764 units due to stagnant demand in part of resource-rich countries while pick-up trucks sold well in Thailand.

As a result, total vehicle unit sales in Japan and overseas declined by 6,135 units (2.5%) over the same period last fiscal year to 236,924 units.

With regards to sales amounts of products other than vehicles, sales of parts for overseas production rose by 6.4 billion yen (28.6%) compared with the same period last fiscal year to 29.0billion yen, engine and component sales gained by 14.9 billion yen (32.4%) year-on-year to 61.0billion yen, and other sales jumped by 20.0 billion yen (11.0%) over the same period last fiscal year to 201.1 billion yen as a result of growth in the vehicle life-cycle management business such as after-sales services.

Consequently, net sales grew by 76.6 billion yen (8.4%) year-on-year to 984.6 billion yen as the sales decrease in part of resource-rich countries was more than offset by the increases in the pick-up truck sales in Thailand, engine and component sales, and sales in the vehicle life-cycle management business. They comprised 390.5 billion yen posted for Japan, up 3.4% over the same period last fiscal year, and 594.1 billion yen for the rest of the world, up 12.0% compared with the same period last fiscal year.

On the profit and loss front, the afore-mentioned sales growth combined with steady profitability improvement based on cost reduction activities and favorable moves in exchange rates all raised operating income by 8.4% year-on-year to 74.1 billion yen and ordinary income by 14.5% over the same period last fiscal year to 82.7 billion yen. In addition to that, net income attributable to owners of the parent increased by 35.9% compared with the same period last fiscal year to 52.6 billion yen.

[Full-year forecast for FY 2018 ending March 2018]
The Company has revised upward the consolidated financial forecast for the current fiscal year ending in March 2018 (shown below) based on the consolidated financial results of the current fiscal year's first half ended on September 30, 2017 as well as on the shipment plan that has reflected the latest economic performances and trends in markets around the world.

The Company expects an increase in sales for the current fiscal year's second half, as a decrease expected in vehicle sales in Japan is forecast to be more than offset by sales increases in overseas operations as a whole as well as by growth in the industrial engine business and vehicle life-cycle management business.

On the profit and loss front, the Company pursues an increase in profits by further improving cost control, such as cost-cutting activities and expense reduction, that, together with the afore-mentioned sales growth and favorable swings of exchange rates, more than offsets the negative effects of price increases in raw materials as well as of expenses for growth strategies. Consequently, the consolidated financial forecast for the current fiscal year ending March 31,

2018 has been revised as shown below:
  • -Net sales: 2,060 billion yen
  • -Operating income: 164 billion yen
  • -Ordinary income: 175 billion yen
  • -Net income attributable to owners of the parent: 109 billion yen

Your kind understanding and support for Isuzu Motors will be greatly appreciated.