TOKYO (Reuters) – Suzuki Motor Corp on Friday cut its forecast for full-year operating profit by 7.4 percent as the Japanese compact car manufacturer expects to take a hit from a domestic vehicle recall stemming from improper vehicle inspections.
Japan’s fourth-largest automaker now expects operating profit to come in at 324 billion yen (£2.2 billion) in the year ended March, down 13.4 percent from a record-high 374.2 billion yen booked the previous year and easing from a previous forecast of 350 billion yen.
Earlier this month, Suzuki booked a loss about 80 billion yen due to costs related to recalling around 2 million vehicles to re-do inspections, which had been completed by uncertified inspectors at the automaker’s plants for the Japanese market.
The recall costs add to Suzuki’s struggles in the financial year that just ended, in which profit in India – its biggest market – took a hit due to a depreciating rupee and sluggish sales growth, while performance in Indonesia and Pakistan have also lagged.
(Reporting by Naomi Tajitsu, Editing by Sherry Jacob-Phillips)