Subaru posts its profit outlook worth $1.05 billion

On Wednesday, Subaru Corp (7270.T) posted its operating profit forecast worth 110 billion yen ($1.05 billion).

The Japanese transportation conglomerate said that U.S. vehicle sales rebounded more than expected after the coronavirus pandemic severely hit the automotive industry.

“In North America, we are seeing a faster-than-expected recovery trend. In April, our inventory was in short supply, but the inventory level has since been recovering, and we believe we can bring that back to an appropriate level by the end of this year,” he said. But there remains much uncertain about the trajectory amid concern about winter wave of COVID-19 outbreaks,” Subaru’s Chief Executive Officer Tomomi Nakamura said in a statement.

“We are still working out carefully an estimate for the January to March quarter. It is hard to say if we can remain bullish or not. We are not optimistic yet,” he added.

Subaru was forced to shut down its vehicle factories in the first few months of the year due to the coronavirus pandemic. Its consumers refrained from getting car dealerships which led to a drop in production and sales.

Subaru said that it sells two-thirds of its cars in the United States.