Log in
E-mail
Password
Remember
Forgot password ?
Become a member for free
Sign up
Sign up
Settings
Settings
Dynamic quotes 
OFFON

4-Traders Homepage  >  Equities  >  Tokyo  >  Fuji Heavy Industries Ltd    7270   JP3814800003

SummaryChartsNewsAnalysisCalendarCompanyFinancialsConsensusRevisions 
News SummaryMost relevantAll newsSector newsTweets 

Fuji Heavy Industries Ltd. : Subaru Maker Expects to Achieve Midterm U.S. Sales Goal

share with twitter share with LinkedIn share with facebook
share via e-mail
0
05/30/2013 | 06:06pm CEST

--Subaru-car maker expects to sell more than 380,000 vehicles in U.S. this year

--Expected sales will beat initial target of 365,000 for this year, goal of 380,000 for fiscal 2015

--May not be able to produce enough Forester SUVs to meet U.S. demand

TOKYO--Demand for some Subaru vehicles in the U.S. could outstrip production as Fuji Heavy Industries Ltd. (7270.TO) expects to hit its midterm sales target more than two years early, the chief executive of the auto maker said Thursday.

Surging sales in the first three months of 2013 followed by a 25% leap in April have convinced Fuji Heavy that it has the momentum to beat not only its 365,000 vehicle target for the current calendar year but also its 380,000 target for the business year ending March 2016, CEO Yasuyuki Yoshinaga said in an interview.

The comment underscores the company's growing success in the U.S. where it now logs about half its global sales and follows a fifth straight year of improved sales in the market in 2012.

But the CEO said the car maker may not be able to take full advantage of soaring demand because of its relatively limited production capacity.

This year's initial Subaru sales target in the U.S. already represented an 8.6% increase on the previous year. But a 17.4% rise in sales to 125,470 vehicles in the first four months of the year from the same period last year strongly indicates that this year will be a banner year for Fuji Heavy. Sales in April were particularly strong thanks to the launch of the remodeled Forester small sport-utility vehicle in March.

The company "will have to set a new target as we are likely to hit" the current goal for the U.S. this year, Mr. Yoshinaga said, referring to the midterm goal.

Fuji Heavy projects a second straight year of record operating profit for the current business year to March 2014 on the back of solid U.S. sales and a weaker yen. The rosy outlook has helped make the company's shares the best performing stock among auto makers in the Tokyo market, even though it is the smallest Japanese car maker by volume.

The firm's efforts to focus more on the U.S. market in the past decade are helping build extra momentum on top of the solid resurgence in the overall market.

The Subaru-vehicle maker now develops vehicles to better meet American customers' tastes by making them wider and roomier. It is also enhancing sales networks in southern states where sales have been relatively weak.

Its latest growth strategy for the market was outlined earlier this month. It said it will increase annual production capacity by 100,000 vehicles to 300,000 at its plant in Indiana by 2016.

However, the latest measure won't help the company meet potential demand over the coming months, the top executive said.

Mr. Yoshinaga said sales of the redesigned Forester could reach 10,000 vehicles this month, above a monthly target of 8,000, but only if the company can build enough. It ships all the SUVs from Japan.

"If this situation persists, we'll face a supply shortage," Mr. Yoshinaga said.

The car maker has been working on improving its supply of vehicles in recent years. Its U.S. inventories increased to a 40-day supply from 18 days at the end of 2011, but still well below the U.S. car industry average of around 60 days.

But it will be hard to raise its output capacity in Japan anytime soon as its domestic plants are operating at full capacity, he said. Inventories for the SUV in the U.S. stand at a 16-day supply, he added.

Write to Yoshio Takahashi at yoshio.takahashi@dowjones.com

share with twitter share with LinkedIn share with facebook
share via e-mail
0
Latest news on FUJI HEAVY INDUSTRIES LTD
03/29 FUJI HEAVY INDUSTRIES : FHI Announces Production, Japan Sales and Export Results..
03/29 FUJI HEAVY INDUSTRIES LTD : ex-dividend day for final dividend
03/28 FUJI HEAVY INDUSTRIES : Subaru to Make Donation for Environmental Activities in ..
03/24 FUJI HEAVY INDUSTRIES : Main events scheduled for April
03/17 SUBARU : 2016 Share the Love® Event Generates More Than $24 Million in Charitabl..
03/08 SUBARU : World Premiere of All-New Subaru Crosstrek at 2017 Geneva International..
03/07 FUJI HEAVY INDUSTRIES : World Premiere of All-New Subaru XV at 2017 Geneva Inter..
03/01 FUJI HEAVY INDUSTRIES : FHI Announces Management Changes (Effective June 2017)
03/01 German automakers top U.S. magazine brand rankings
02/28 FUJI HEAVY INDUSTRIES : FHI Announces Management Changes(Effective June 2017)
More news
Sector news : Auto & Truck Manufacturers - NEC
10:56a TATA MOTORS : Volkswagen scandal cut German auto industry's sway over Brexit ter..
09:59aDJIndia's Mahindra Considers Electric Vehicles for U.S. and China -- Update
06:44aDJIndia's Mahindra Plans Electric Vehicles for U.S. and China
03:59a VOLKSWAGEN : says U.S. approves sale of modified diesel vehicles
03/29 European shares rise in 'relaxed' reaction to Brexit day
More sector news : Auto & Truck Manufacturers - NEC
News from SeekingAlpha
03/28 Auto industry continues on path of making Michigan great again
03/25 U.S. auto sales track higher as incentives jump
03/01 SUBARU FEB. U.S. SALES : +8%
02/28 Consumer Reports ranks top auto brands and models
02/27 U.S. auto sales seen falling 3% in February
Advertisement
Financials ( JPY)
Sales 2017 3 322 485 M
EBIT 2017 -
Net income 2017 300 706 M
Finance 2017 694 395 M
Yield 2017 3,47%
P/E ratio 2017 10,58
P/E ratio 2018 8,09
EV / Sales 2017 0,75x
EV / Sales 2018 0,65x
Capitalization 3 197 464 M
More Financials
Chart FUJI HEAVY INDUSTRIES LTD
Duration : Period :
Fuji Heavy Industries Ltd Technical Analysis Chart | 7270 | JP3814800003 | 4-Traders
Full-screen chart
Technical analysis trends FUJI HEAVY INDUST...
Short TermMid-TermLong Term
TrendsBearishNeutralBullish
Technical analysis
Income Statement Evolution
More Financials
Consensus
Sell
Buy
Mean consensus OUTPERFORM
Number of Analysts 19
Average target price 5 297  JPY
Spread / Average Target 27%
Consensus details
EPS Revisions
More Estimates Revisions
Managers
NameTitle
Yasuyuki Yoshinaga President, CEO & Representative Director
Mitsuru Takahashi Director, Manager-Finance & Administration
Jun Kondo Representative Director & Vice President
Naoto Muto Director & Senior Managing Executive Officer
Takeshi Tachimori Director & GM-Subaru Global Marketing
More about the company
Sector and Competitors
1st jan.Capitalization (M$)
FUJI HEAVY INDUSTRIES ..-12.80%28 748
TOYOTA MOTOR CORP-10.95%179 664
DAIMLER AG2.32%83 260
VOLKSWAGEN AG2.77%75 161
BAYERISCHE MOTOREN WER..-4.44%59 221
HONDA MOTOR CO LTD0.76%55 961
More Results