Japan's Isuzu Motors Suffers Drop in Quarterly Profits

Japan's biggest truck maker, Isuzu Motors, on Monday reported a 16.4% drop in net profit for the fiscal first quarter because of a stronger yen and higher raw material costs. But Isuzu, which is partly owned by Toyota Motor Corp., maintained its forecast for a rise in net earnings for the full financial year to March. Net profit came to 17.69 billion yen (US$164 million) in the three months to June, a company statement said. The company is enjoying growing truck sales in resource-rich countries, but a stronger yen is cutting into repatriated revenues. The soaring cost of raw materials is also pressuring profits. Operating profit fell 13% to 20.26 billion yen in the first quarter, despite a 3.2% rise in revenue to 415.19 billion yen. For the current fiscal year to March 2009, Isuzu forecast an 11.8% gain in net profit to 85 billion yen. Copyright Agence France-Presse, 2008