FHI Announces Second Quarter Financial Results for FY 2012

Tokyo, November 1, 2011 - Fuji Heavy Industries Ltd. (FHI), the maker of Subaru automobiles, today announced its financial results for the second quarter of fiscal year ending March 31, 2012.

<2nd Quarter Consolidated Results: Net Sales>
Due to drastically decreased production resulting from the major earthquake in northeastern Japan, in overseas market, Subaru vehicle sales were 193 thousand units, or down 20.3% compared to the same period in fiscal 2011, whereas sales in Japan were 73 thousand units, or down 18.0%. As a result, global vehicle sales for Subaru totaled 266 thousand units, or down 19.7% from a year ago, and overall net sales were down 18.5% compared to the same period in fiscal 2011 to 655 billion yen due to decreased vehicle sales and the influence of a strong yen on currency exchanges.

<2nd Quarter Consolidated Results: Operating Income>
Operating income decreased 67.3% to 18.8 billion yen over the previous year, mainly due to decreased sales affected by the major earthquake as well as the loss in currency exchange, although the company made an effort to reduce SG&A expenses and other costs. Ordinary income decreased 63.3% to 21.6 billion yen from the same period of the previous fiscal year and net profit decreased 26.5% to 32.8 billion yen despite 26.1 billion yen in extraordinary income from the sale of the FHI head-office building.

<Forecast for FY 2012>
For the full-year consolidated results for the fiscal year ending March 2012, although unit sales projections have been upgraded by 13 thousand units over the previous projections to 645 thousand units and despite continuing operating cost reductions, in light of the ongoing appreciation of the yen, the previously announced projections are left unchanged at net sales of 1,480 billion yen and operating income of 30 billion yen.* Ordinary income is projected at 29 billion yen, helped by exchange forward contracts, with net income projected at 36 billion yen.
The projections of full-year consolidated results for the fiscal year ending March 2012 are based on assumed foreign exchange rates of 78 yen per US dollar and 108 yen per EURO.

*Original forecast for consolidated results for fiscal year ending March 31, 2012 (announced August 2, 2011)
- Net sales: 1,480 billion yen
- Operating income: 30 billion yen
- Ordinary income: 25 billion yen
- Net income: 35 billion yen
- Foreign currency rate: 81 yen per US dollar, 115 yen per EURO