Print Page


News Releases

News Release

2007/02/08


Mazda Reports Third Quarter Financial Results for Fiscal Year 2006

- Consolidated operating profit up 28 percent in the first nine months of fiscal year 2006 in the final year of the Mazda Momentum plan -

- Consolidated sales revenue up 9 percent year-on-year to 2,289.6 billion yen
- Consolidated operating profit up 28 percent to 107.3 billion yen
- Full-year operating profit outlook revised upward to 158.0 billion yen, up 28 percent

 

HIROSHIMA, Japan—Mazda Motor Corporation today reported its financial results for the first nine months of fiscal year (FY) 2006 and announced revisions to its full-year financial projections.

 

FY2006 Third Quarter Results
For the nine-month period of April through December 2006, Mazda’s consolidated sales revenues reached 2,289.6 billion yen, a 9 percent year-on-year increase over the same period in FY2005. Operating profit increased by 23.6 billion yen to 107.3 billion, up 28 percent from year-ago levels. This is due to an improved product mix, cost cutting efforts and positive effects of a depreciation in the Japanese yen, which offset higher raw materials prices. Ordinary profit increased by 23 percent to 83.9 billion yen and net income was 42.1 billion yen, up 2 percent over FY2005. However, excluding the one-time impact of an extraordinary gain from the transfer of pension fund liabilities and asset-impairment losses reflected in last year’s results, net income was up 26 percent compared with the prior year. In addition, due to an accident involving a car-carrying vessel near the Aleutian Islands of Alaska in July 2006, an extraordinary loss, net of projected insurance coverage, was recorded in the third quarter.

 

On a geographic basis, despite strong sales of mini vehicles, Mazda retail sales in Japan were down 8 percent to 182,000 units due to the effects of reduced industry demand for registered vehicles. In the United States, sales volumes reached 202,000 units, a 4 percent increase year-on-year, primarily due to the contributions from newly-launched models such as the Mazda CX-7, and the Mazda5 and MX-5 Miata. Strong demand in Europe for Mazda5 and Mazda6 diesel models, in addition to the MX-5, led to a retail volume of 219,000 units, an 11 percent increase. In China, a tough competitive environment resulted in a 4 percent decrease in sales to 98,000 units. Total wholesales for first 9 months of this fiscal year were higher in North America and Europe. This was offset by lower demand in Japan and other regions, resulting in consolidated Mazda wholesales of 829,000 units, down 1 percent on the same period last year.

 

Full-year projections for FY2006
For FY2006, Mazda is forecasting all year-on-year profits to be at record levels for a sixth consecutive year of profit improvements. Global revenues are forecast to be 3,200.0 billion yen, up 10 percent on FY2005. Operating profit is forecast to reach 158.0 billion yen, a 28 percent improvement, and ordinary profit is forecast to grow by 28 percent, reaching 130.0 billion yen. Full-year net income is projected to rise 9 percent to 73.0 billion yen. Based on the results for the first nine months of the fiscal year, Mazda has revised the projections it announced in November 2006. Due to the impact of revised unit volumes, exchange rate assumptions and fixed costs, full-year projections for sales revenues and operating profit have been revised upward and forecasts for ordinary profit and net income have been revised down. In addition, with revised sales estimates for Japan and other regions, consolidated wholesales are projected to increase 2 percent over FY2005 figures to 1.17 million units.

 

Mazda Representative Director and Chief Financial Officer David Friedman said, “Mazda’s financial results for the first nine months of fiscal 2006 reflect progress despite challenging business conditions. We are pleased to see that our operating margin has improved to 4.7 percent, up 0.7 points over last year. With less than two months remaining in the Mazda Momentum plan, we will continue to focus on steady improvement as we move forward in building a solid foundation for Mazda’s future.”

 

Dollar/Euro Equivalent

April-December 2006 Financial Results Unit: millions
  Yen US$ Euro
Sales Revenue 2,289,600 19,221.0 14,623.5
Operating profit 107,300   900.8 685.3
Ordinary profit 83,900 704.3 535.9
Net income 42,100 353.4 268.9

Notes:
Financial results
-Dollar equivalents compiled at 119.12 yen to the dollar (Exchange rate prevailing on Dec. 31, 2006).
-Euro equivalents compiled at 156.57 yen to the Euro (Exchange rate prevailing on Dec. 31, 2006).

 

Disclaimer
The projections for FY2006 and future outlook shown in this press release are based on various uncertainties including without limitation the conditions of the world economy in the future, automotive industry trends and the risk of exchange rate fluctuations.  Please be aware that Mazda’s actual performance may differ substantially from these projections. Please note that neither Mazda nor any third party providing information shall be responsible for any damage an individual may suffer due to investment in Mazda based on the information contained in this press release.

Related information

loading...

{pubDate}

{title}