Isuzu Motors Limited (ISUZY) Q1 2027 Earnings Call Prepared Remarks Transcript

Operator

Thank you very much for watching the Isuzu Motors Limited Earnings Presentation for the first quarter of the fiscal year ending March 2027. I would like to introduce our attendees. Yamakita, Director, Executive Officer and CFO.

Fumiya Yamakita
Senior Executive Officer, CFO, SVP of Corporate Division & VP of Corporate Division

I am Yamakita.

Operator

Now Yamakita will provide the explanation.

Fumiya Yamakita
Senior Executive Officer, CFO, SVP of Corporate Division & VP of Corporate Division

I am Yamakita. First, I will provide a summary of the first quarter. Operating income increased by JPY 17.6 billion year-on-year as the positive impact of pricing actions and steady progress in cost reduction efforts outweighed the decline in sales volume for both CV and LCV segments and the cost increases due to the Middle East situation have not yet fully materialized. Revenue reached a record high for a first quarter. Profit items below operating income reached the second highest level for a first quarter following the fiscal year ending March 2025. In terms of volume, domestic CV sales saw a year-on-year decline due to model changeovers and longer-than-expected lead times in the painting process.

Overseas, shipping delays to the Middle East due to the blockade of the Strait, along with a lack of shipping capacity to various other markets resulted in a negative impact of approximately 3,000 units, leading to a decrease in volume. For LCVs, the Thai market remains in a difficult environment, staying on par with the same period last year, while exports declined primarily to the Middle East, similar to the CV segment.

Foreign