On May 13, Isuzu Motors Limited announced the financial results for the fiscal year ended March 31, 2019.
[Results for the fiscal year ended March 2019]
In the fiscal year ended March 2019, vehicle unit sales in Japan rose by 2,169 units (3.0%) compared with the previous fiscal year to 74,431 units thanks to the last-minute demand before the change of emissions regulations for light-duty trucks.
Overseas vehicle unit sales increased by 28,261 units (6.6%) over the previous fiscal year to 457,891 units as pickup trucks sold well in Thailand, with markets in Asia and Africa recovering.
As a result, consolidated total vehicle unit sales in Japan and abroad grew by 30,430 units (6.1%) year-on-year to 532,322 units.
As regards to sales amounts of products other than vehicles, sales of parts for overseas production fell by 14.2 billion yen (19.8%) compared with the previous fiscal year to 57.4 billion yen, engine and component sales jumped by 16.5 billion yen (13.0%) over the previous fiscal year to 143.5 billion yen due to an increase in the number of engines sold for industrial applications, and other sales gained by 23.9 billion yen (5.8%) year-on-year to 432.9 billion yen thanks to growth in the vehicle life-cycle management business such as after-sales services.
Consequently, net sales grew by 78.8 billion yen (3.8%) compared with the previous fiscal year to 2,149.2 billion yen, which comprised 819.2 billion yen for Japan, up 4.1% over the previous fiscal year, and 1,330.0 billion yen for the rest of the world, up 3.6% year-on-year, owing to the increases in the pickup truck sales in Thailand and the engine and component sales, as well as thanks to the expansion in the vehicle life-cycle management business.
On the profit and loss front, the afore-mentioned sales growth effect and efforts to reduce and control costs raised operating income by 6.0% compared with the previous fiscal year to 176.8 billion yen and ordinary income by 8.9% over the previous fiscal year to 189.0 billion yen. Net income attributable to owners of the parent climbed by 7.4% year-on-year to 113.4 billion yen.
[Forecast for the fiscal year ending March 2020]
In FY2020 ending in March 2020, the Company expects growth in the industrial engine business and the vehicle life-cycle management business, thus forecasting net sales to rise.
On the profit front, the business environment surrounding the Company is expected to become tough due to deteriorating matters of emerging countries' currencies and rises in raw material prices.
Consequently, our forecast for the fiscal year ending March 31, 2020, is as shown below.
- - Net sales: 2,160.0 billion yen (up 10.8 billion yen from the previous year)
- - Operating income: 165.0 billion yen (down 11.8 billion yen)
- - Ordinary income: 170.0 billion yen (down 19.0 billion yen),
- - Net income attributable to owners of the parent: 100.0 billion yen (down 13.4 billion yen).
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