US Sales Bolster Subaru First Half Results adding 56B Yen

Subaru Corporation today in Tokyo announced its consolidated financial results for the first half of the Japanese fiscal year ending 31 March 2023. During April through September 2022, production constraints continued due to the global shortage of semiconductors, however global production increased 24.5% to 425,000 units as plans were “flexibly adjusted.”

Production in Japan rose 29.9% to 283,000 units, while production in the U.S. grew 15.0% to 143,000 units. As a result of increased production, global vehicle sales increased 6.2% to 399,000 units, led especially by Subaru’s key US market. Due to the effects of foreign exchange rates, the growth in vehicle sales, and other factors, consolidated revenue rose 30.5% to 1,750.9 billion yen*.

Results for April–September 2022: Consolidated Profit and Loss

Subaru said that positive factors such as the effects of foreign exchange rates and the growth in unit sales more than offset a steep rise in raw material prices and an increase in SG&A expenses. Operating profit rose 56 billion yen to 110.4-billion-yen, profit before tax grew 59.2 billion yen to 120.4 billion yen, and profit for the period attributable to owners of parent increased 33.1 billion yen to 77.9 billion yen.

Forecasts for FYE 2023

With the pricing policy and the improvements in sales mix expected to offset the steep rise in raw material prices to a certain degree and incorporating the positive effects of foreign exchange rates, the Company revises its previous forecasts for FYE 2023* (announced on 3 August 2022) as follows:

• Revenue: 3,800 billion yen (an increase of 300 billion yen from previous forecast)
• Operating profit: 300 billion yen (an increase of 100 billion yen from previous forecast)
• Profit for the period attributable to owners of parent: 210 billion yen (an increase of 70 billion yen from previous forecast)

Reflecting the results for the first half period and the upward revision of the full year forecasts, the Subaru has decided to increase its interim dividend by 10 yen per share to 38 yen per share and revised the year-end dividend forecast to 38 yen per share and the annual dividend forecast to 76 yen per share.

*The forecasts for FYE 2023 are based on exchange rate assumptions of 133 yen to the U.S. dollar and 136 yen to the euro.