Fuji Heavy, Parent Company Of Subaru, Forecasts 57% Profit Increase

Fuji Heavy Industries, the maker of Subaru cars, forecasted a 57% increase in quarterly profits, as sales in the United States grew while costs were reduced.

Fuji Heavy also said that they will boost production at its Indiana plant from 100,000 to 131,000 units. The plant builds Subarus as well as Toyota Camrys, as Toyota owns a 16.5 stake in Fuji Heavy.

Speaking to Reuters, Chief Executive Ikuo Mori said that Subaru may need to take further steps if it keeps growing in the United States. “It’s not that simple to add capacity, but we may have to consider some steps if sales keep growing at this pace,” he said, adding suggesting that the India plant has the potential to be expanded.

Fuji Heavy is on track for an annual profit of $474 million, with shares up 15% since last year, making it one of the best performing auto industry companies in Japan.

[Source: Reuters]