Fuji attempts to slash its way back into the black.(Fuji Heavy Industries Ltd.)(Brief Article)

Byline: James B. Treece

Fuji Heavy Industries Ltd., maker of Subaru vehicles, is trying to reverse its falling profits by slashing spending and cutting staff.

Fuji Heavy is reducing spending on r&d, plants and equipment. It also plans the first round of Japanese staff cuts in its history by offering early retirement packages.

The automaker also is selling financial assets.

Fuji Heavy projects a modest currency gain this year, in contrast to the currency loss it forecast as recently as last May.

Its cost-cutting efforts yielded a 12.3 percent rise in operating profits to [yen]17.41 billion, or $153.8 million at current exchange …