Suzuki Motor lifts H1 outlook on strong sales

TOKYO, Oct 17 (Reuters) Japan's Suzuki Motor Corp. on Tuesday lifted its first-half parent profit outlook by 17 percent, riding a wave of overseas demand for its small cars as high oil prices push consumers towards more fuel efficient vehicles.

Boosted by the popularity of 660cc minivehicles in Japan and heady growth in Europe and India, Suzuki had already flagged strong earnings growth in August when it raised its consolidated annual revenue outlook and said it would build a new domestic plant for small cars.

Suzuki said net profit on a parent-only basis for the six months to end-September was now seen at 21 billion yen, compared with an earlier forecast of 18 billion yen, and 18 percent higher than its result a year earlier.

Revenue, boosted by robust exports of its Swift compact in Europe, was seen at 899 billion yen, 17 percent higher than its initial estimate.

Overall exports for during the first half rose 35 percent, with exports to Europe climbing 58 percent, Suzuki spokesman Yoichi Kojima said.

Parent operating profit was seen at 27 billion yen, 12.5 percent above its earlier estimate.

Suzuki, ranked fourth in sales volume behind local rivals Toyota Motor Corp., Nissan Motor Co. Ltd. and Honda Motor Co.

Ltd., said it was still collating its consolidated earnings data and would release those results on Nov. 1.

Suzuki said in August it would aim for group revenue of 3 trillion yen this year, up 7 percent from its previous forecast.

Chief Executive Osamu Suzuki also said at the time that the auto maker would target an increase in profits in line with the higher revenue forecast by sticking to its original profit margin plan.

That would imply a consolidated operating profit of 123 billion yen instead of the official forecast of 115 billion yen, at the targeted margin of 4.1 percent.

Analysts, however, are more bullish. A Reuters consensus estimate produced from forecasts by 17 analysts puts Suzuki's full-year operating profit at 131 billion yen.

In addition to the new small car factory in Japan, Suzuki has also said it is expanding production capacity in Hungary and Pakistan and at its Indian unit Maruti Udyog Ltd.

Prior to the announcement, Suzuki shares ended down 1 percent at 3,140 yen, compared with a 1.4 percent decline in the transport equipment subindex ITEQP.

REUTERS SBA DS1423