TOKYO, Nov 20 (Reuters) - Japanese truck maker Isuzu Motors Ltd on Thursday posted a return to profit in the past half year and lifted its full-year forecasts, citing aggressive cost-cutting and a recovery in domestic truck demand.
Group operating profit for the six months ended September 30 was 35.70 billion yen ($327 million), compared with a loss of 21.35 billion yen in the year-earlier period.
Net profit was 24.92 billion yen, versus a loss of 84.23 billion yen a year ago, when restructuring costs ballooned on bigger pension liabilities and special losses from early retirement packages.
For the year to next March, Isuzu, owned 12 percent by General Motors Corp , forecast a net profit of 40 billion yen, with sales seen rising to 1.4 trillion yen.
Although Japanese truck demand is only a fraction of the levels seen during the economic bubble a decade ago, sales have been lifted significantly this year by the introduction of stricter emission controls.
Last month, Hino Motors Ltd , a unit of Toyota Motor Corp and the country's healthiest truck maker, posted a 273 percent rise in interim net profit as sales jumped 29 percent.
Cash-strapped Nissan Diesel Motor Co is also due to post robust half-year sales growth when it announces its earnings at 3 p.m. (0600 GMT), although it forecast last week a loss of 9.6 billion yen at the net level, more than double last year's.
Isuzu's shares spiked up on the news, trading up 8.19 percent at 185 yen, compared with around 177 yen before the announcement. The broad TOPIX index was up half a percent.
Isuzu's shares have nearly tripled from 65 yen at the start of the business year as brisk sales lifted share prices across the sector. ($1=109.16 Yen)