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Looking at our consolidated results, Net sales grew 128.5 billion yen year on year to total 428.9 billion yen. This is an all-time high for first quarter sales. This uptick comes from a gain of 128.7 billion yen resulting from a better sales mix variance due to increases in new car sales volumes in overseas markets as well as a gain of 4.9 billion yen from sales increases at three Fuji Heavy Industry (FHI) companies. These gains offset an exchange loss of 5.1 billion yen due to the appreciation of the yen.
Operating income rose by 6.7 billion yen to reach 17.3 billion yen. Negative factors such as higher SG&A expenses, the stronger yen, and increased R&D expenses were offset by a better sales mix variance due to increases in sales volumes and a reduction cost. This will be looked at in further detail later on.
Ordinary income also rose 7.4 billion yen to total 19.1 billion yen due to increased operating income, gains on forward exchange contracts, etc.
Income before income taxes and minority interests amounted to 19.0 billion yen, a decrease of 13.3 billion yen, since a gain on the sale of the Subaru Building was posted during the first quarter of the last fiscal year.
This drop in income before income taxes and minority interests brought net income down 12.1 billion yen to 16.4 billion yen.
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