Aisin Seiki quarterly profit rises 2.6%

Aisin Seiki Co.'s operating profit rose 2.6 percent to ¥68.1 billion ($641 million) in the fiscal fourth quarter that ended March 31, the supplier

Revenue rose 7.6 percent to $9.70 billion, aided by a 10 percent increase in automatic-transmission sales.

Those results pushed both revenue and operating profit for the full fiscal year ended March 31 to record levels, the company said in its . It predicted further, but modest, increases for both in the current fiscal year, although it also forecast net income will ease.

For the full fiscal year, net income rose 6.2 percent to $1.27 billion, while operating profit rose 11 percent to $2.39 billion. Revenue rose 9.7 percent to $36.79 billion, due to strong automatic-transmission and vehicle-body parts sales, as well as the contribution of the newly consolidated Art Metal Manufacturing Co., Aisin said.

Aisin Seiki is a member of the Toyota Group and derived 58 percent of its revenue from sales to the group last year. Its main consolidated units include Aisin AW, Aisin Takaoka, Advics and Aisin AI.

The rise in operating profit came largely on higher production volumes. Currency gains and cost cutting largely offset higher raw-material and depreciation costs.

The profit increase also benefited from comparison to the prior year, when extraordinary items had reduced operating profit by $231.6 million.

Regional results

The Japan market, including vehicles built there for export, continues to dominate Aisin's results.

Operating profit in Japan jumped 22 percent to $1.6 billion, as revenue rose 11 percent to $21.66 billion.

North America ranked second in revenue, but last by region in operating profit. Revenue there eased 0.9 percent to $5.39 billion, but operating profit collapsed 88 percent to $26.4 million. In contrast, revenue in China rose 4.7 percent to $3.56 billion, while operating profit there slipped 2.5 percent to $517.7 million.

In Europe, revenue rose 13 percent to $3.3 billion, and operating profit rose 11 percent to $47.1 million.

Aisin Seiki forecast net will slip 1.2 percent in the current fiscal year to $1.25 billion. It forecast operating profit will edge up 0.5 percent to $2.4 billion, on a 1.8 percent gain in revenue to $37.46 billion.

Aisin Seiki, of Kariya, Japan, ranks No. 6 on Automotive News' list of the top 100 global parts suppliers, with parts sales to automakers of $31.39 billion in the fiscal year that ended March 31, 2017.

Yen amounts were converted at $1 equals 106.24 yen, the prevailing exchange rate as of March 31, the final day of the fiscal year, according to Oanda.com.