Suzuki Reports Q3 2012-2013 Results
Suzuki‘s motorcycle operations posted more disappointing numbers in the company’s third quarter report for the three months ended Dec. 31, 2012. The company reported sales of 600,000 motorcycles for the quarter, down 11% from the 674,000 units sold in the same period the year before.
Most of the decrease stemmed from the Asian market where Suzuki‘s sales totaled 505,000 units over the quarter compared to 539,000 in the year prior. Sales were also down in Europe where the overall economy continues to struggle. North American sales have flat-lined with Suzuki selling again 7,000 units in the third quarter. The Japanese market was the lone bright spot as Suzuki saw domestic sales rise to 17,000 units from 16,000.
For the year to date, Suzuki has sold 1.777 million units, with Asia accounting for 1.469 million motorcycles and scooters (down from 1.556 million in the year prior). North American sales are up to 32,000 units from 31,000 over the same period, representing the only region seeing gains. European sales decreased 26.9% to 38,000 units from 52,000 units in the same nine-month period. Domestic sales were also down despite the increase in the third quarter, with Suzuki selling 55,000 units compared to 59,000 units the year prior.
The shrinking sales led to a 13.5% decrease in motorcycle net sales revenue for the nine months ended Dec. 31, 2012. Suzuki reports net sales of 163.3 billion yen (US$1.76 billion) from its motorcycle business for the period, a decrease of 25.5 billion yen from the net sales of 188.8 billion yen reported in the same period the year before. The declining sales led to an operating loss of 10.0 billion yen (US$107.8 million) for Suzuki’s motorcycle business compared to a loss of 2.8 billion yen for the opening three quarters the previous year.
Overall, Suzuki reported a net profit of 48.4 billion yen (US$521.9 million) for its opening three quarters, thanks mostly to increased automobile sales.
Looking ahead, Suzuki forecasts sales of 2.603 million motorcycles by the end of its fiscal year, a modest increase over the 2.589 million motorcycles sold in the 2010-2011 fiscal year.