Suzuki estimates higher profit in next financial year

Posted By: Religare
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Suzuki estimates higher profit in next financial year
Maruti Suzuki India: Quotes, News
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Japan's one of the largest automobile company Suzuki Motor Corp has forecasted 2.9% rise in annual operating profit after the devastating earthquake had forced a limited start to production and demand slows in its key Indian market.

Japan's fourth-largest automaker has estimated the operating profit of $1.37 billion for the fiscal year ending in March 2012, beating the earlier average forecast.

The maker of the Swift and other compact cars sees net profit of 50 billion yen, up 10.7% from FY11.

Suzuki last month posted a 51% drop in fourth-quarter operating profit to $180 million, citing a hit from the supply chain disruption after the magnitude-9.0 earthquake. Suzuki's majority-owned Indian unit, Maruti Suzuki India Ltd, last week ended a 13-day strike by employees that had crippled production and led to more than $90 million in lost output.

About 800 workers had been on strike at the top Indian automaker's Manesar plant, demanding recognition of a new union specific to the plant. The company has one workers' union recognized by management. The Manesar plant rolls out about 1,200 units every day in two shifts.

The last time the company witnessed a major strike was when workers stopped production for three months from November, 2000, to January, 2001.

MSI is setting up two new units with an annual installed capacity of 2.5 lakh units each inside its Manesar facility at a total investment of Rs 3,625 crore. The existing plant in Manesar can produce 3.5 lakh units annually, while the three units in Gurgaon have a combined annual capacity of 8.5 lakh units.

Read more about: automobile, maruti suzuki, suzuki, japan
Story first published: Friday, June 24, 2011, 9:31 [IST]
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