Japan's automakers are forecasting record-high profits for
the fiscal year ending March 31, 2014. The weakening yen is a big
contributor to this phenomenon, but it isn't the only
factor.
By February 10, 2014, Japan's big seven automakers –
Toyota, Nissan, Honda, Suzuki, Mazda, Fuji Heavy (Subaru's
parent), and Mitsubishi – all reported their forecasts.
Except for Nissan, the forecasts are pretty good. The combined
forecasts of the seven automakers for net profit amount to 3.37
trillion yen ($33.0 billion). If achieved, it would break their
record high of 3.25 trillion yen ($31.9 billion), which they marked
in March 2008 just before the financial crisis. Similarly, the
combined forecasts for operating profit amount to 4.46 trillion yen
($43.7 billion), which comes very close to their record high of
4.48 trillion yen ($43.9 billion) in March 2008. Five out of the
big seven expect to break their own record on both operating profit
and net profit.
