The Japanese truckmaker rose as much as 9.6 percent to 360 yen, the biggest intraday gain since April 14, before trading at 351 yen as of 10:58 a.m. in Tokyo trading. The benchmark Nikkei 225 (NKY) gained 1 percent.
Isuzu yesterday raised its net income forecast for the year ending March 31 to 74 billion yen ($952 million), a 14 percent increase from an earlier forecast of 65 billion yen. That compares with the 67.7 billion yen average of 10 analyst estimates compiled by Bloomberg.
“Isuzu’s ability to raise its forecast shows that the company is on its way to recovery,” said Satoshi Yuzaki, a Tokyo-based analyst at Takagi Securities Co. “There’s strong demand for trucks in Asia in markets such as Indonesia.”
The Tokyo-based company will extend a halt at its plants in Thailand until Nov. 11 due to a shortage of parts, even though its factories aren’t flooded. Production will be cut by 25,000 units from Oct. 11 to Nov. 11, the truckmaker said.
Toyota Motor Corp. (7203) and Honda Motor Co. scrapped their full- year profit forecasts after the Thai floods disrupted output, saying they needed more time to assess the financial toll from the disaster.
Isuzu’s President Susumu Hosoi said yesterday the company is considering expanding production capacity in Indonesia.
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