Subaru Corporation today announced its consolidated financial results for the fiscal year ended March 31, 2017.
FYE2017 Results: Consolidated Net Sales
Consolidated global sales of Subaru vehicles rose 11.1% to 1,065,000 units, surpassing the one million mark for the first time. Unit sales in Japan increased 9.4% to 159,000 units, as a decline in mini vehicle sales was offset by growth in passenger car sales led by the all-new Impreza, which was launched in October 2016. Overseas unit sales grew 11.4% to 906,000 units, driven by continued strong sales of the Legacy and Outback in North America.
Consolidated net sales increased 2.9% to 3,326 billion yen, as unit sales growth offset foreign exchange losses and other factors.
Consolidated unit sales in North America marked an all-time record*1 for the 8th consecutive year. Consolidated net sales, global unit sales, and overseas unit sales posted all-time records*1 for the 5th consecutive year.
FYE2017 Results: Consolidated Profit and Loss
While posting unit sales growth and cost reduction progress, operating income fell 27.4% to 410.8 billion yen due to increases in SG&A and R&D expenses as well as foreign exchange losses. The rise in SG&A expenses was due to increased quality-related costs associated with airbag inflators as well as increased sales expenses due to higher interest rates in the U.S. Ordinary income decreased 31.7% to 394.3 billion yen and net income attributable to owners of parent declined 35.3% to 282.4 billion yen.
FYE2018 Forecasts
In prospect of further growth in North America and other regions, consolidated global unit sales are projected to increase 3.8% to 1,106,000 units. The company forecasts net sales of 3,420 billion yen (up 2.8%), operating income of 410 billion yen (down 0.2%), ordinary income of 410 billion yen (up 4.0%) and net income attributable to owners of parent of 285 billion yen (up 0.9%), factoring in the positive impact of unit sales growth and a weaker yen as well as the negative impact of increases in SG&A and R&D expenses and higher raw material costs.
Consolidated net sales, global unit sales, overseas unit sales, and North American unit sales are projected to post all-time records.
Currency rate assumptions: 110 yen/US$, 120 yen/euro
*1: Since fiscal year ended March 1986, when the company started full-year consolidated financial reporting.
