Subaru Corp.'s operating profits weren’t looking so great in the last fiscal year, in fact the company’s profits dropped 27% and broke their three year record of increasing financial results. The latest operating income numbers probably brought on a sigh of relief with the latest quarter ending in an 18% increase.
That’s 119.34 billion yen or around $1.06 billion for the first quarter, which ended on June 30th. From April to June alone, the manufacturer saw a global revenue increase of 11% to 854.77 billion yen ($8.90 billion).
Strong U.S. sales were a contributing factor. CFO Toshiaki Okada was paraphrased by Automotive News saying “Subaru was able to keep sales growing in the U.S., the company’s biggest market, despite cooling overall demand by tailoring new products to better match American tastes.”
Wise decision considering how North America account for roughly 70% of Subaru’s global sales, which has increased to 271,300 vehicles. Of that, 189,000 were sold in North America though Canada did not account for a large portion of it with sales sitting at 15,500 vehicles in the last quarter.
Moving forward, Subaru’s global profits have been forecasted to expand 3.8% to 1.1 million vehicles in the current fiscal year. Most likely propped up by U.S. and Canada, both expected to see volume increases of 3% and 2.8% respectively.