Fuji Heavy Industries Ltd., the maker of Subaru cars, raised its full-year profit forecast by 13 percent on the weaker yen and increased auto sales.
Net income for the fiscal year ending March will probably reach 76 billion yen ($811 million), compared with the carmaker’s previous 67 billion yen projection, the Tokyo-based company said in a statement today. That compares with the 83.3 billion yen average of 21 analyst estimates compiled by Bloomberg.
Fuji Heavy joins Toyota Motor Corp. in raising its profit projections as the weakening yen makes Japanese products more profitable overseas. The maker of Subaru cars delivered a record number of vehicles in the U.S. last year, led by the Impreza hatchback.
The company said it expects to sell 722,000 vehicles for the full year, an increase of 8,000 units from its previous forecast. The automaker today also raised its projections for operating income and revenue. The projections are based on currency assumptions at 82 yen to the dollar and 105 yen to the euro, according to the statement.
Fuji Heavy was the best performer on the Nikkei 225 Stock Average last year, more than doubling as the automaker’s lack of manufacturing plants in China gave it flexibility to ship more cars to the U.S. and Japan. The shares climbed 4.2 percent at 1:24 p.m. in Tokyo, extending this year’s gain to 27 percent.