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Isuzu April-Dec. group net profit climbs to record 89 bil. yen

February 6, 2014

TOKYO, Feb. 7 -- (Kyodo) _ Japanese truck and bus maker Isuzu Motors Ltd. said Friday its group net profit for the April-December period climbed 38.2 percent from a year earlier to a record 89.48 billion yen, as strong domestic sales and cost-cutting efforts more than offset sluggish demand in Thailand.

Its consolidated operating profit rose 47.2 percent to 132.91 billion yen on sales of 1.29 trillion yen, up 9.0 percent.

In Japan, sales grew 7.1 percent from a year earlier to 48,086 units, backed by strong demand for trucks for reconstruction work following the 2011 earthquake and tsunami and the government's stimulus measures.

However, overseas sales dropped 7.0 percent to 320,730 vehicles due chiefly to falling demand for pickup trucks in Thailand, where the government incentive for first-time car buyers ended in 2012.

Managing Executive Officer Masanori Katayama told a press conference in Tokyo that the company saw some "unexpectedly severe" conditions in Thailand amid recent political turmoil but that overall performance was solid since the company booked record net and operating profits for the first nine months of the business year.

For the full business year through March, the company kept unchanged its consolidated net profit projection at 115 billion yen, up 19.1 percent from the previous year.

Its operating profit is expected to rise 37.6 percent to 180 billion yen on sales of 1.82 trillion yen, up 9.9 percent.

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Source: Japan Economic Newswire

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