Subaru Sharply Lowers Earnings Forecasts for April-Sept.

October 24, 2018

Tokyo- Major Japanese automaker Subaru Corp. has sharply revised down its consolidated earnings forecasts for April-September, due mainly to costs related to product quality.

Subaru now expects to post an operating profit of 61.0 billion yen, down 44.5 pct from its earlier projection and some 70 pct lower than a year earlier, the company said Tuesday.

Subaru did not disclosed further details.

A series of scandals have hit the automaker since autumn last year, including emission data falsification and irregularities in vehicle inspections, but the costs to be registered for April-September are not related to the problems, a Subaru official said.

The company may have incurred recall or other costs due to a new product quality scandal. Subaru will announce details of the costs at appropriate timing, the official said. Jiji Press