Key Facts
• Subaru announced its full-year earnings forecast for the fiscal year ending March 2025.
• Net profit is expected to drop by 52.7% to ¥160 billion compared to the previous year.
• From April to June 2024, net profit fell 34.7% year-on-year to approximately ¥54.8 billion.
• U.S. additional tariffs and yen appreciation significantly impacted profits.
• Subaru’s U.S. sales account for over 70% of its total sales.
• A 15% tariff rate agreed between Japan and the U.S. poses substantial challenges.
• CEO Osaki reaffirmed the U.S. as a key market despite the challenges.
Summary
Subaru has forecasted a significant decline in its net profit for the fiscal year ending March 2025, projecting a 52.7% drop to ¥160 billion. This follows a 34.7% year-on-year decrease in net profit for the April to June 2024 quarter, which totaled ¥54.8 billion. The decline is attributed to U.S. additional tariffs and yen appreciation, which have heavily impacted the automaker’s earnings. With over 70% of its sales coming from the U.S., the 15% tariff rate agreed between Japan and the U.S. presents a major challenge. Despite these difficulties, CEO Osaki emphasized Subaru’s commitment to the U.S. as a critical market.
