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Suzuki Motor Q3 op profit up 31 pct, keeps forecast

Published 02/07/2011, 01:12 AM
Updated 02/07/2011, 01:16 AM

TOKYO, Feb 7 (Reuters) - Suzuki Motor Corp, Japan's No.4 automaker, posted a 31 percent rise in quarterly profit on Monday on brisk sales in Asia, but stuck to its conservative forecasts as competition intensifies in its key Indian market.

Suzuki has enjoyed robust earnings growth compared with most domestic rivals thanks to its limited exposure to the stronger yen and heavy weighting in India, where majority-held unit Maruti Suzuki India Ltd sells every other car.

But falling margins in India due to rising raw materials prices and a slowdown in the country's car market have weighed on Suzuki's shares, which have been the worst performer among Japanese auto stocks in the past three months.

In the October-December third quarter, Suzuki's operating profit jumped 31 percent to 23.64 billion yen ($287.7 million), in line with an average estimate of 24 billion yen in a survey of four analysts by Thomson Reuters I/B/E/S.

For the full year to March 31, the maker of the SX-4, Swift and other compact cars kept its operating profit forecast at 100 billion yen. A survey of 21 analysts puts the profit at 115.8 billion yen, up 46 percent from last year.

Shares in Suzuki have fallen 3 percent in the past three months, while all other Japanese automakers have gained, mainly on the bright outlook in the recovering U.S. market. Tokyo's transport sector subindex rose 21 percent in the same period. ($1=82.17 Yen) (Reporting by Chang-Ran Kim; Editing by Michael Watson)

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