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Investing.com -- Suzuki Motor exceeded profit expectations in its first quarter earnings announced on Tuesday, leading to a positive market reaction.
The company maintained its fiscal year 2025/26 profit guidance, which it now considers a floor, and anticipates a recovery in the Indian market during the second half of the year.
Suzuki reported first quarter operating profit of JPY 142 billion, surpassing analyst estimates by 9-12%. Net profit reached JPY 102 billion, exceeding forecasts by 11-21%, despite sales of JPY 1,398 billion coming in 2% below expectations.
The automaker’s global vehicle sales totaled 754,000 units in the quarter, representing a 4% year-over-year decline. Indian sales fell 6% to 402,000 units, while exports to regions including Africa, the Middle East, and Japan grew 37% to 97,000 units.
European sales dropped significantly by 27% to 48,000 units, primarily due to the discontinuation of the Ignis and Jimny models. However, Japanese sales increased 4% to 176,000 units, driven by strong demand for registered cars like the Solio and Fronx.
The company’s strong operating profit performance was attributed to unrealized gains, reduced quality-related costs, and minimal impact from US tariffs. Higher-than-expected finance income also contributed to the net profit results.
For the full fiscal year 2025/26, Suzuki maintained its guidance of JPY 6,100 billion in sales, JPY 500 billion in operating profit, and JPY 320 billion in net profit.
The company expects Indian market conditions to improve in the second half, supported by policy rate cuts, tax reductions, and the launch of a new SUV model, the e Vitara.
Suzuki noted that rare earth supply issues from the first quarter have been resolved, though production of the Jimny Nomade remains temporarily halted for unrelated reasons. The company is working to identify the cause and resume production quickly.
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