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Isuzu's giant profit as VW looms

2011-04-29 08:50

FLOOD OF MONEY: Isuzu’s commercial vehicles have sold so well during the last year as to enable the company to post huge profits.

The world’s largest manufacturer of diesel engines appears to be in robust financial health after releasing its annual results.

The Nikkei business daily reported that Isuzu recorded an operating profit of R6.5bn (on the back of a 30% increase in total sales) for the year ending March 2011. These numbers are a near eight-fold increasing over those audited a year earlier.

Fundamentally, a 40% increase in exports for its trucks and bakkies has driven the company’s strong results.

CHOICE TIME

Isuzu remains a crucial international supplier of diesel engines; as such it has benefited from improving global economic conditions. Diesel commercial vehicles motorise the global infrastructure and logistics industries and, with trade (and government spending) rising, demand for workhorse vehicles powered by Isuzu diesel engines has increased.

Its positive set of financial results has come at a choice time for the Japanese manufacturer and will no doubt help Isuzu as it goes up against much larger VW during forthcoming joint-venture negotiations.
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