The Japanese commercial vehicle manufacturer slashed its full-year profit forecast as slumping pickup truck sales in Thailand and soaring material costs weigh on earnings.
Isuzu Motors Ltd. now expects operating profit of 230 billion yen ($1.5 billion) for the year ending March 2025, down 12% from its previous projection and 22% lower than last year. The company also cut its sales forecast to 3.25 trillion yen, citing challenging market conditions.
Sales of light commercial vehicles in Thailand plummeted 71% in the first half, as tough economic conditions forced dealers to reduce inventories. The company now expects to sell just 49,000 units in Thailand this fiscal year, less than half of last year’s volume.
“Market conditions in Thailand remain severe,” Isuzu said in its presentation. The company is also seeing increased competition in Middle East export markets.
Commercial truck sales in Japan rose 7% in the first half but fell short of expectations due to production delays. North American and European sales declined as backlog orders normalized.
Despite the profit warning, Isuzu maintained its full-year dividend forecast at 92 yen per share. The company said its growth strategy toward 2030 remains unchanged and it will continue with planned shareholder returns, including a share buyback program announced in August.
For the fiscal first half, operating profit fell 10% to 129.2 billion yen while sales dropped 6.2% to 1.54 trillion yen. Net income declined 21% to 69.2 billion yen.
