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6
Isuzu Motors Limited ■ Annual Report 2014
Financial results for FY2014
During the fiscal year ended March 2014, the overall state
of the world economy was one of gradual recovery, although
performance remained sluggish in certain sectors. Moderate,
sustained improvement continued to characterize the
Japanese economy as well.
Sales were healthy in the domestic market thanks to
factors including recovery-driven demand and economic
stimulus measures implemented by the government.
Overseas, a greater-than-expected slowdown in demand in
Thailand, a key market for Isuzu, led to a year-on-year decline
in total sales volume, including pickup trucks. However,
(commercial) truck sales were generally brisk in North
America, the Middle East, Africa, and other regions. As a
result, we shipped a record number of trucks overseas for the
fourth year in a row.
With regard to financial results, net sales rose ¥105.3
billion (up 6.4%) from the previous year to ¥1,760.9 billion
on increased truck sales volume as described above.
Operating income rose ¥43.4 billion (up 33.2%) to ¥174.2
billion as the effects of sales growth and cost structure
improvements combined with a correction of yen strength
to overcome increases in up-front costs associated with
efforts to implement the policies outlined in our Mid-term
Business Plan. Ordinary income grew ¥44.9 billion (up 31.7%)
to ¥186.6 billion, while net income increased ¥22.8 billion
(up 23.6%) to ¥119.3 billion. Each of these profit figures
represents an all-time record for the second year running.
FY2015 forecast
During the fiscal year ending March 2015, we expect sales
to remain brisk in the domestic market. Looking overseas,
although a recovery in demand in Thailand is likely to remain
elusive, we expect demand to remain strong in other markets
Strengthening our corporate structure and business base to
facilitate future growth
Message from the President