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Subaru profit climbs 48% on strong crossover sales in first quarter

TOKYO — Subaru reported a 48% increase in first-quarter operating profit on Monday as global sales grew, led by demand for the Ascent and Forester SUVs in the United States. The smallest of Japan's major automakers posted an operating income of 92.2 billion yen ($870 million) for April-June, versus 62.1 billion yen a year earlier and an average estimate of 65.6 billion yen from eight analysts polled by Refinitiv. Sales in the United States, by far Subaru's biggest market, rose 20%. It accounts for about 60% of Subaru's overall sales. The maker of Legacy sedans and Forester SUV crossovers maintained its forecast for operating income at 260 billion yen for the year to March 2020, up 45% from a year earlier. The previous fiscal year was marred by a string of recalls, production stoppages and inspection improprieties that cut the automaker's earnings in half. Subaru reiterated its annual forecast for global sales of 1.06 million vehicles. It also left unchanged its assumption that the yen will average 110 against the dollar over the course of the fiscal year, versus 111 last year. A stronger currency eats into profits because cars exported from Japan become more expensive and the value of earnings made overseas decreases.

Subaru WRX STI Diamond Edition is the most powerful ever offered

The U.S. is no stranger to seeing Subaru create special-edition WRX STI models that are significantly more potent than what it sells here. Just in the last few years, we saw the W208 and the Type RA-R with over 320 horsepower, compared to the 300 in the standard American STI. That latter one particularly stung, since our Type RA just had 310 horsepower. But what we're not accustomed to seeing is Subaru's home market of Japan being cut out of a special-edition STI, which is exactly the case with the 2018 Subaru WRX STI Diamond Edition. This special STI was developed by Subaru South Africa of all places. And it's a serious machine. It makes a whopping 349 horsepower and 342 pound-feet of torque, which means it's the most powerful WRX STI offered by Subaru to the public. The car also features Brembo brakes with 6-piston calipers up front and 2-piston calipers in the back. The car stands out from regular STIs with its florescent yellow body kit. The car was created by Subaru South Africa to celebrate the thirtieth anniversary of Subaru Technica International, the company we all know as STI. Because of that, the Subaru branch is only offering 30 for sale. Prospective customers can register for a chance to have one of the cars at this official website. Also interesting is that this isn't the only ultra-limited edition STI from Subaru South Africa. The company did the same thing for the fifteenth anniversary, and only sold 15 examples of that car. It had a remarkable pun for the name: Subaru Impreza WRX STI STImulating Edition. Really, we're not making that up. Related Video:

Subaru shows racing versions of STI and BRZ

While we gear up for next week's Detroit Auto Show, the 2015 Tokyo Auto Salon is currently on going, and Subaru has marked the occasion by trotting out a pair of new racers. First up, we have the car shown above, with the company's entry to the 2015 Nurburgring 24 Hour Race. Subaru is entering a WRX STI in the grueling endurance race, which runs from May 14 to May 17. The left-hand-drive racer has received a fair crop of upgrades for endurance duty, although Subaru didn't really bother to elaborate on them, unfortunately. Next to the N24 car, Subaru introduced a striking version of its rear-drive BRZ, destined for the Japanese Super GT series. The team campaigning the BRZ will be led by Subaru's Hideharu Tatsumi, who will also be one of the drivers for the Nurburgring effort. Again, Subaru hasn't offered any info on technical changes for the BRZ GT300. Scroll down for the brief press release, and then check out the galleries of both cars. 2015 SUBARU Motorsport Activities Tokyo, January 9, 2015 – Fuji Heavy Industries Ltd. (FHI) - the maker of Subaru automobiles and Subaru Tecnica International Inc. (STI)* unveiled the new racing car developed from the WRX STI for 24 Hours Nurburgring endurance race in 2015 and announced an outline of Subaru Motorsport activities for 2015 at the Tokyo Auto Salon 2015 with NAPAC (Japan Car Parts and Aftermarket Promotion Association). *: Subaru Tecnica International Inc. (STI; President Yoshio Hirakawa; located in Mitaka, Tokyo) Nurburgring 24-Hour Race STI will participate in the Nurburgring 24-Hour Race (from 14 to 17 May in Germany) for eight consecutive years, with a vehicle whose performance has been enhanced from its base car – the Subaru WRX STI. The race car's performance such as aerodynamics, stability, body rigidity and engine output have been enhanced compared to the previous model. In addition, visibility for racing flags has also been improved by introducing a left-hand drive car. Like last year, Hideharu Tatsumi will take the helm of team operations as team manager, in addition to the development of the car. The drivers are Sasaki (Japan), Lasee (Germany), van Dam (Netherlands) and Tim Schrick (Germany), the winner of 2014 VLN endurance racing championship who newly joins the team. SUPER GT Series Subaru, with the "SUBARU BRZ GT300" race car, will participate in the SUPER GT series this year as well, widely regarded as Japan's top motorsports category.