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Japan's Mazda, Fuji Heavy Post Big Q2 Profit Jump on Weak Yen

By Chang-Ran Kim

TOKYO, Oct 31 (Reuters) - Japanese automakers Mazda Motor Corp and Fuji Heavy Industries Ltd posted rosy second-quarter profit growth on Friday as a weak yen made their exports more lucrative.

The second-tier automakers benefit the most among their domestic peers from a cheaper yen because they ship overseas about 80 percent of their Japan-made vehicles. Earnings made abroad are worth more when repatriated under a weak yen.

Results were also helped by brisk sales at both automakers in the United States, their biggest market. Driven by red-hot sales of the Forester SUV and Legacy models, Subaru recorded a 34th straight month of sales growth in September.

Mazda, Japan's fifth-biggest automaker, said on Friday operating profit grew 27 percent to 47.59 billion yen ($428.8 million) in July-September, not far behind the average 55.76 billion yen expected in a poll of 12 analysts by Thomson Reuters I/B/E/S.

The maker of the Mazda3 and other sporty cars kept its annual profit forecasts unchanged, and slightly increased its revenue forecast.

Meanwhile, Fuji Heavy, the smallest of Japan's eight passenger car makers, raised its full-year operating profit forecast to 382 billion yen from 340 billion yen, and lifted its dividend forecast for the year by 6 yen to 62 yen.

Fuji Heavy said it now expects to sell 22,000 more vehicles overseas this year than initially forecast thanks to brisk North American sales, although it now sees weaker-than-expected sales in Japan and Europe.

Fuji Heavy said its quarterly operating profit jumped 32 percent to 106.94 billion yen, beating the consensus forecast of 95.34 billion yen. Revenue rose 24 percent to 716.85 billion yen.

The dollar soared above 111 yen on Friday after the Bank of Japan unexpectedly eased monetary policy further.

Mazda and Fuji Heavy had both previously assumed an average rate of 100 yen for the year. They adjusted those assumptions on Friday to 101 yen and 104 yen, respectively.

Shares in Mazda ended 5.7 percent higher before the results were announced. Fuji Heavy closed up 7.3 percent after its results as Tokyo's benchmark Nikkei average surged 4.8 percent after the central bank decision.

($1 = 110.9800 yen) (Editing by Christopher Cushing)