TOKYO (Reuters) — Suzuki Motor Corp. said operating profit rose slightly in the third quarter on healthy demand in India, but trimmed its full-year net profit outlook due to a tax-related issue.
Japan’s fourth-largest automaker posted a 1 percent increase in operating profit to 45.1 billion yen ($384.5 million) in the October-December period, just short of an average forecast of 49.7 billion yen from 11 analysts polled by Thomson Reuters.
Suzuki cut its annual net profit outlook by 4 percent to 120 billion yen, saying a planned cut in the corporate tax rate will affect its calculations for deferred tax assets. The forecast is, however, still higher than last year’s net profit of 96.9 billion yen.
Suzuki’s Indian business Maruti Suzuki India is India’s top-selling carmaker, with nearly 50 percent of the passenger vehicle market, but it faces growing competition from Toyota Motor Corp., which last month said it would make rival minivehicle maker Daihatsu Motor Co. a wholly owned unit.