Suzuki 2008 Annual Report Download - page 25

24 SUZUKI MOTOR CORPORATION
Financial Review
1. Operating results
Consolidated net sales for the Suzuki Group during the current fiscal year amounted to 3,502,419 million yen (110.7% as
against PFY). Operating income amounted to 149,405 million yen (112.4% as against PFY). Net income amounted to 80,254
million yen (107.0% as against PFY).
These results were due to increases of sales, cost reduction and exchange gain, etc., which absorbed increase of
depreciation, R&D expenses and other expenses, etc.
Factors which significantly influenced the consolidated statement of income are described as follows:
Note: PFY = Previous Fiscal Year
(1) The operating results by business segmentation
(a) Motorcycle operations
In domestic market, sales of SUZUKI models increased thanks to good performance of the “Lets 4” which has fuel
injection etc., though the total demand decreased. In oversea market, despite sales shrink in North America, due to
recession of USA, etc., our total sales in overseas increased owing to increase of sales volume in Europe, Asia and
other region. As a result, the net sales of motorcycle operation reached 591,967 million yen (100.6 % as against PFY).
Operating income decreased to 22,542 million yen (49.7% as against PFY) as reduction in profits due to sales shrink in
North America could not be absorbed by cost reduction and exchange gain, etc.
(b) Automobile operations
In domestic market, as a result of reinforcement of product line-up such as additional introduction of 1.2 liter engine
and CVT into the subcompact passenger car “SWIFT”, launching of a new compact sedan the “SX4” and the a new
wagon-type minicar “PALETTE”, domestic net sales increased slightly over the previous fiscal year despite decrease in
total demand. Overseas sales increased greatly over the previous fiscal year owing to steady sales of our world
strategic vehicle “SWIFT” and “SX4”. As a result, the net sales of automobile operation reached 2,833,892 million yen
(113.2 % as against PFY), and operating income increased to 113,962 million yen (148.8% as against PFY) through
absorption of increase of depreciation cost, research and development cost and other expenses by increase of sales,
cost reduction and exchange gain.
(c) Other businesses
The net sales of other businesses amounted to 76,559 million yen (106.8% as against PFY) and operating income
amounted to 12,899 million yen (117.8% as against PFY) because of net sales increase, etc.
(2) The operating results of geographical segmentation
(a) Japan
Net sales amounted to 2,194,017 million yen (105.2% as against PFY) and operating income increased to 84,960
million yen (121.9% as against PFY) through absorption of increase of depreciation, research and development
expenses and other expenses by increase of sales, cost reduction and exchange gain.
(b) Europe
Thanks to good sales of the “SWIFT” and the “SX4”, net sales amounted to 777,323 million yen (117.6% as against
PFY). Operating income decreased to 13,378 million yen (90.4% as against PFY) due to launching expenses for new
vehicles and increase of depreciation cost.
(c) North America
Due to increase in petrol price and subprime loan crisis, demand of motorcycles in USA decreased. As a result, net
sales decreased to 405,696 million yen (88.3% as against PFY) and operating income also decreased to -8,535 million
yen.
(d) Asia
Thanks to sales increase of “Maruti Suzuki India Ltd.” in India and “PT Indomobile Suzuki International” in Indonesia,
net sales increased to 846,801 million yen (129.1% as against PFY) and operating income also increased to 56,138
million yen (128.7% as against PFY).
(e) Other areas
Net sales increased to 88,411 million yen (143.6% as against PFY) but operating income decreased to 4,608 million
yen (91.0% as against PFY).