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Subaru H1 profit drops on weak sales, cuts forecast

TOKYO, Nov 17 (Reuters) - Fuji Heavy Industries , the maker of Subaru vehicles, posted a drop in interim earnings and cut its full-year forecasts on Monday, hurt by an ageing line-up at home and higher sales incentive costs in the U.S. market.

The niche maker of off-road vehicles, which is one-fifth owned by General Motors Corp , said consolidated operating profit for April-September slid 50 percent to 18.31 billion yen ($168.9 million), although sales edged up 2.6 percent to 665.39 billion yen.

The company, which had already been set to post its lowest operating profit in seven years this business year, cut its full-year estimate to 53 billion yen from its May forecast of 62 billion yen.

Analysts expect next year to be much better when the latest versions of its Legacy cars go on sale in the United States. ($1=108.39 yen)