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Fuji Heavy logs 1st qtr net loss of 19.29 bil. yen, keeps forecast

Fri. July 31, 2009; Posted: 01:38 PM
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TOKYO, Jul 31, 2009 (Kyodo News International - McClatchy-Tribune Information Services via COMTEX) -- FUJHY | Quote | Chart | News | PowerRating -- Fuji Heavy Industries Ltd. said Friday it logged a group net loss of 19.29 billion yen for the April to June quarter and maintained its full-year loss forecasts as auto sales plunged in Russia and Europe on the back of the global economic downturn.

The net loss compared with a year-earlier profit of 1.41 billion yen, but narrowed from the 55.1 billion yen in net losses booked during the January to March quarter thanks to cost-cutting efforts.

The automaker reported brisk sales of its new Subaru Legacy series, fully remodeled for the first time in six years, as well as active demand in China and the United States, but said this failed to compensate for slumping sales in other regions.

For the three-month period, Fuji Heavy logged an operating loss of 19.67 billion yen in a reversal from a year-earlier profit of 6.46 billion yen and in an expansion from the 15.7 billion yen loss booked in the previous quarter.

Sales fell 20.5 percent from a year earlier to 271.32 billion yen as vehicle sales in Russia and Europe plunged 71.4 percent to 7,000 units.

Fuji Heavy sold 100,000 units globally in the first quarter, down 21.7 percent.

Sales in Japan fell 23.1 percent to 33,000 units, but sales in China climbed 44 percent to 7,000 units while sales in North America increased 13.6 percent to 45,000 units.

The company maintained its earnings outlook for the whole of fiscal 2009 through next March at a net loss of 55 billion yen and an operating loss of 35 billion yen.

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