Suzuki Forecasts 9% Increase in North American Sales in 2011-2012 Fiscal Year
Suzuki Motor Corporation released its forecast for the fiscal year ending March 2012, predicting a 9.4% increase in worldwide motorcycle unit sales including a 9.0% increase in the North American market.
The fiscal forecast, delayed from Suzuki’s previous quarterly report in May because of the uncertainty caused by the March 11 earthquake, paints a positive picture for the current fiscal year. Suzuki forecasts sales of about 55,000 units in North America, an increase from about 50,000 units sold the previous fiscal year.
Suzuki also forecasts sales increases in Asia (up 12.4%) and in Japan (up 3.0%) while unit sales are expected to decrease in Europe (down 8.7%) and other regions (down 4.8%). Overall, worldwide sales are expected to near 2.95 million units, a 9.4% increase from the 2.70 million units sold in the prior fiscal year.
Overall, Suzuki forecasts a net income of 50 billion yen (US$621 million) for the fiscal year ending March 31, 2012, an increase from the 45.2 billion yen (US$561 million) net income from the previous year.
Regarding the earthquake and tsunamis, Chief Executive Officer Osamu Suzuki says the company needs to spread its domestic facilities. Suzuki’s Japanese properties are currently concentrated in the Tokai region of the country. Though the Tokai region was not directly affected by the disasters in March, the region is considered a high-risk area for earthquakes.
“Our facilities are all at risk, either of an earthquake, tsunami or (disruption at) a nuclear power plant,” Suzuki tells Reuters, noting the company has a motorcycle test facility close to a shoreline. “If we don’t spread out our factories after all that’s happened, I would be called a fool as a chief executive,”
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[Source: Suzuki, Reuters]