Suzuki May Revise Profit Forecasts on India Stoppage, EVP Says
Suzuki Motor Corp. (7269) Executive Vice President Toshihiro Suzuki and Senior Managing Officer Toyokazu Sugimoto comment on the outlook for the company’s operations in India after its Maruti Suzuki India Ltd. (MSIL) unit suspended production following a riot at its Manesar plant on July 18.
They spoke in Tokyo at a first-quarter results briefing.
On restarting production:
“The local Haryana police are still investigating the incident and there are still suspects. We will prepare for the restart of production after the investigations are completed and announce it as soon as we’re ready.
‘‘The facilities were not damaged, which is good news, but with our workers affected, the mental health care of our workers may become important. Until we confirm the safety and health of our workers, we are not in a situation to talk about when we will able to resume business in the country.’’
On the company’s earnings forecast:
‘‘The current forecast does not reflect any impact from our Indian operations, and we are currently assessing our earnings forecast over the situation in India. We will revise our forecast if we see the need to do so.
‘‘Our current forecast was fairly conservative to begin with, but whether we will need to revise will depend on the situation in Manesar.’’
On the effect of its business in India on earnings:
‘‘About 40,000 to 50,000 cars are built at the Manesar factory. For every day that production is suspended, the retail revenue at Maruti is reduced by about 1 billion yen.’’
To contact the editor responsible for this story: Young-Sam Cho at email@example.com