Isuzu 2013 Annual Report Download - page 8

06 Isuzu Motors Limited
Financial results for FY2013
In the fiscal year ended March 2013, a slowdown in the
global economy appeared to spread as the European sovereign
debt crisis impacted on a number of emerging countries. These
international economic realities weighed on the economic
recovery in Japan that began in the aftermath of the Great East
Japan Earthquake, but conditions were improving by the end of
the fiscal year.
In the domestic truck market, the impact of reductions in
subsidies for environment-friendly vehicles lessened as recovery-
driven demand and other factors drove healthy sales. Overseas,
rising demand in areas with strong sales, particularly the
ASEAN region, the Middle East, and Africa, offset the effects
of the economic slowdown in the Chinese market, leading to
growth in overall CV (Commercial Vehicle) exports and record
sales volume. Sales of LCVs (pickups and their derivatives) were
robust, particularly in Thailand, and the increased production
capacity of our new plant in Thailand, which began operations
during the second half of the fiscal year, made a significant
contribution to sales growth.
With regard to financial results, net sales totaled ¥1,655.6
billion, up ¥255.5 billion (18.3%) from the previous year due to
increased sales volume as described above. Operating income
rose ¥33.4 billion (34.3%) to ¥130.8 billion as the effects
of sales growth and continued cost structure improvements
overcame increases in up-front costs associated with efforts to
implement the policies outlined in our Mid-term Business Plan.
Ordinary income grew ¥38.8 billion (37.7%) to ¥141.7 billion,
while net income increased ¥5.2 billion (5.8%) to ¥96.5 billion.
Each of these profit figures represents an all-time record.
FY2014 forecast
During the fiscal year ending March 2014, as we revitalize
our business to meet future challenges, we expect continued
stability in our principal markets of Japan and Thailand.
Regarding other international markets, we look forward
to boosting sales not only in emerging economies such as
countries in the ASEAN region and the Middle East, but
also in the developed nations of North America. While we
expect growth in costs associated with increased up-front
investments in order to achieve our management goals, we will
be redoubling the cost rationalization activities we pursued last
Steadily Implementing Policies and Tasks under the Mid-term
Business Plan and Working to Improve Profitability
Message from the President