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Mazda Reports Operating Profit of 64.1 Billion Yen for First Nine Months of Fiscal 2004
HIROSHIMA, Japan--Mazda Motor Corporation today reported financial results for the first nine months of FY2004 and confirmed that the company remains on track to achieve best-ever levels of operating profit for the fiscal year ending March 31, 2005.
For the nine-month period of April through December 2004, Mazda wholesales were 810,000 units, up 3 percent from year-ago levels. Sales revenues for the period reached 2.01 trillion yen, a year-to-date increase of 8.2 percent over FY2003. Year-to-date operating profit was 64.1 billion yen and net income was 26.1 billion yen.
For the third quarter of FY2004, the period of October through December 2004, Mazda wholesales were 280,000 units and sales revenues were 685.6 billion yen. Consolidated operating profit in the third quarter was 20.6 billion yen, while net income was 7.4 billion yen.
Year-on-year profit comparisons were not provided, as Mazda has not disclosed quarterly profit levels in prior years. In FY2003, Mazda reported revenue and wholesale data on a quarterly basis; prior to FY2003, Mazda provided no quarterly financial data.
On a geographic basis, fiscal year-to-date retail sales in Japan were up slightly on last year to 196,000 units. Retail sales in the United States for the period were 200,000 units, a decrease of 4.1 percent year-on-year, primarily due to an aging truck and SUV lineup. Results in Europe showed continued strength, with retail sales up by 25,000 units for a fiscal year-to-date total of 201,000 units, a 14.3 percent increase from year-ago levels.
In other key markets, sales in the first nine months of FY2004 were positive. In Canada, sales were up 9.9 percent compared to the same period in FY2003, and the Chinese market showed sales of 73,000 units, an increase of 5.2 percent over year-ago levels.
Full-year Fiscal Outlook Remains Unchanged
Restoration efforts at the damaged U1 plant are moving faster than initially projected thanks to a module-based construction system that has reduced both construction time on the affected area of the building and the interval required for the installation of new production equipment.
Consolidated wholesales and sales revenues for FY2004 are now projected to be 1.1 million units and 2.66 trillion yen, down 30,000 units and 50 billion yen from prior projections. Mazda's profit outlook for FY2004, however, remains unchanged, reflecting progress in reduction of fixed costs, more favorable exchange rates and insurance coverage. Financial projections for FY2004 now include:
- Sales revenue: 2,660 billion yen
Mazda Representative Director and Chief Financial Officer Gideon Wolthers said, “We are pleased with our year-to-date results and, despite the December fire at our Ujina No. 1 plant, are still on course to achieve all-time record operating profits.”