American Suzuki raised some eyebrows after news broke yesterday the company was cancelling franchise agreements with numerous dealerships in the U.S. The company was already under close scrutiny after making the bold decision to quit selling cars to focus on powersports when it filed for Chapter 11 in November. Reducing its dealer network appears to […]
Suzuki Reports Q1 2011-2012 Results
Suzuki’s motorcycle business saw a profit for the first time in 11 quarters despite selling 21.0% fewer motorcycles.
In the quarter ended June 30, 2011, Suzuki saw an operating income of 300 million yen (US$3.8 million), compared to a loss of 1.8 billion yen (US$22.9 million) reported in the same quarter of 2010. Suzuki netted 75.4 billion yen (US$961.5 million) in motorcycle sales over the quarter, a year-on-year increase of 8.0% from 69.8 billion yen (US$890.0 million) in 2010.
Looking at unit sales however, the picture is less rosy. Suzuki sold 648,000 motorcycles over the quarter (including 6,000 ATVs), a decrease from the 820,000 units (with 7,000 of them ATVs) in the same quarter of 2010. Sales in China accounted for most of the decrease, as sales dropped to 215,000 units from 429,000 units.
North American sales fell to 15,000 units from17,000 units while European sales dropped from 33,000 units to 25,000 units. Meanwhile, Suzuki saw increases in unit sales in Japan (22,000 vs. 20,000), Africa (31,000 vs. 23,000) and Central and South America (48,000 vs. 36,000).
Overall, Suzuki saw a net profit of 18.7 billion yen (US$238.4 million), a 23.6% increase from the 15.2 billion yen (US$193.8 million) reported a year earlier.