Print Page


News Releases

News Release

2008/02/06


Mazda Reports Third Quarter Financial Results For Fiscal Year 2007

- Net income up 7 percent year-on-year in the first nine months of the fiscal year -

Consolidated sales revenue up 9 percent year-on-year in the first nine months of FY2007 to 2,506.3 billion yen
Consolidated operating profit increases by one percent year-on-year to 108.4 billion yen
Consolidated net income up 7 percent year-on-year to 45.0 billion yen
FY2007 full-year forecast remains unchanged

 

HIROSHIMA, Japan—Mazda Motor Corporation today reported its financial results for the first nine months (April to December) of fiscal year (FY) 2007 and confirmed its full-year financial projections.

 

FY2007 Third Quarter Results
For the first nine months of FY2007, Mazda’s consolidated sales revenue reached 2,506.3 billion yen, a 9 percent increase over the same period in FY2006. This is primarily due to a steady increase in global retail sales, led by strong sales of the Mazda3 (known in Japan as the Mazda Axela), as well as the recent all-new Mazda2 (Mazda Demio) launch. Consolidated operating profit rose one percent to 108.4 billion yen, resulting mainly from cost cutting initiatives and the effects of a weak yen relative to other currencies. This helped offset the costs of increased investment in research and development and deteriorating external conditions, such as higher fixed costs and raw material prices as well as inventory adjustments. Consolidated ordinary profit was up 7 percent to 89.7 billion yen and consolidated net income rose 7 percent year-on-year to 45.0 billion yen. All profit levels increased when compared to the same nine month period of FY2006.

 

Mazda’s global retail volume for the first nine months of FY2007 improved 11 percent year-on-year to 975,000 units excluding the impact of discontinued Mazda brand vehicle production in Hainan, China. Amid the 7 percent decline in industry demand in Japan compared to a year ago, Mazda’s retail sales were down 4 percent year-on-year to 175,000 units, outperforming the industry decline. Moreover, during the period September to December 2007, retail sales in Japan rose by 1,000 units over the same three-month period in 2006 due to the popularity of the highly acclaimed all-new Mazda2 (Mazda Demio) and other factors. Launched in July 2007 in Japan, the all-new Mazda2 (Mazda Demio) has won a number of automotive awards, including Japan’s 2007/2008 RJC Car of the Year, Car of the Year in New Zealand, Austria, Belgium, Croatia and Denmark; while placing second in the 2007 European Car of the Year.

 

Retail sales volumes in North America reached 302,000 units, a 9 percent increase over the same period last year, on the strength of the enduring popularity of the Mazda3 and increased sales of the Mazda CX-9, which won the 2007 North American Truck of the Year award. In Europe, retail sales volumes increased in line with expectations, up 3 percent year-on-year to 228,000 units, anchored by the September 2007 launch of the all-new Mazda2. Sales were particularly strong in Russia, which posted record results each month and achieved 56 percent growth compared to a year ago. The UK and Portugal, as well as Russia, recorded all-time best calendar year sales.

 

In China, sales reached 71,000 units. Excluding the impact of terminating the production of Mazda brand vehicles in Hainan, retail volumes showed a significant 97 percent year-on-year growth. In other global markets, the first nine months of this fiscal year saw retail volumes grow 22 percent to 199,000 units, reflecting healthy sales of the Mazda CX-7, which was launched in Australia in November 2007, the BT-50 pickup truck and the Mazda3, which continues to deliver brisk sales in numerous markets. Monthly sales in Australia hit a record level for 12 consecutive months. Five other markets, including Israel and several Latin American markets, also achieved record calendar year sales volumes.

 

Mazda’s Representative Director, Senior Managing Executive Officer and CFO, David E. Friedman, said, “Mazda is making steady progress toward achieving a seventh consecutive year of increased profits despite a more challenging external environment, including intensified sales competition. The all-new Mazda2 and Mazda6 have both launched smoothly and are already earning accolades around the world. Mazda will strive to steadily increase global retail sales volumes and we will continue working towards achieving the targets set out in the Mazda Advancement Plan.”

 

Financial projections for FY2007
Mazda projects that it will achieve its full-year financial targets for FY2007 even though changes in business sentiment stemming from the subprime loan issue and other potentially negative factors could have an uncertain effect on global sales. Exchange rate assumptions for the full fiscal year are 114 yen to the dollar and 161 yen to the Euro. Fourth quarter exchange assumptions are 105 yen to the dollar and 155 yen to the Euro.

 

FY2007 Full Year Projections

Sales revenue:  3,320 billion yen, up 72.5 billion (2 percent) on FY2006
Operating profit:  160.0 billion yen, up 1.5 billion yen (1 percent) on FY2006
Ordinary profit:  140.0 billion yen, up 12.2 billion yen (10 percent) on FY2006
Net income:  85.0 billion yen, up 11.3 billion yen (15 percent) on FY2006

 

Dollar/Euro Equivalents

April-December 2007 Third Quarter Financial Results Unit: millions
  Yen US$ Euro
Sales Revenue 2,506,300 21,954.3 15,039.3
Operating profit 108,400 949.5 650.5
Ordinary profit 89,700 785.7 538.3
Net income 45,000 394.2 270.0

Notes:
Financial results

Dollar equivalents compiled at 114.16 yen to the dollar (Exchange rate prevailing on Dec. 28, 2007).
Euro equivalents compiled at 166.65 yen to the Euro (Exchange rate prevailing on Dec. 28, 2007).

 

Disclaimer
The projections for FY2007 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.

 

For additional financial information, please visit the Investor Relations section in the Mazda official website at www.mazda.com/investors/.

Related information

loading...

{pubDate}

{title}