Mazda reports solid first-half earnings
By Yuri Kageyama / Associated Press
TOKYO -- Japanese automaker Mazda Motor Corp. reported a 68 percent jump in profit Tuesday in the first half of the fiscal year and raised its outlook for the full year, citing strong sales in Europe.
Mazda, 33.4 percent owned by Ford Motor Co., recorded group net profit of 18.7 billion yen ($177 million) in the six months ended Sept. 30, up from 11.2 billion yen the same period a year ago.
Sales surged 9.2 percent to 1.3 trillion yen ($12.5 billion) from 1.2 trillion yen.
The company did not break out quarterly figures.
Mazda continued to record strong sales in Europe on the popularity of new products such as the Mazda3 sedan, also known as the Axela.
Mazda President Hisakazu Imaki said the automaker plans to maintain growth over the next decade by investing in research, strengthening its position in key markets and cutting costs.
“We have made solid progress, but I am not yet totally satisfied. We must further accelerate our momentum,” he said.
For the full year ending March 31, 2005, Mazda raised its profit forecast to 37 billion yen ($350 million) from 34 billion yen ($322 million) with operating profit reaching a record high for the Hiroshima-based company. The new forecast is up 9 percent from 34 billion yen marked the previous year.
The automaker raised its sales projection to 2.71 trillion yen ($25.7 billion) from an earlier 2.66 trillion yen ($25 billion). The new target is below the 2.91 trillion yen in sales Mazda recorded for fiscal 2003.
Mazda officials said the company was headed to its best profits since 1985. The key is keeping the momentum going in Europe while gaining more ground in Japan and recovering in the difficult U.S. market, they said.
Over the first fiscal half, Mazda sold more cars in all key regions except the United States.
In Japan, it sold 135,000 vehicles during the six months, up 1 percent from 134,000 the same period a year ago. In Europe, Mazda’s sales climbed 20 percent to 143,000 vehicles from 119,000. But in the United States, Mazda sold 140,000 vehicles, down 3 percent from 144,000.
The company expects to sell 1.13 million vehicles globally for the full year through March 2005, down nearly 8 percent from 1.22 million in fiscal 2003. But Mazda hopes to reverse the slide and sell 1.25 million vehicles a year by fiscal 2006 by launching new models.
Mazda plans to offer 16 new products around the world from this fiscal year through fiscal 2006, although officials refused to give details on a regional breakdown or models in the works. It also plans to strengthen dealer networks in the United States, China and Japan.
Cooperation with Ford, based in Dearborn, Mich., is another plus, according to Mazda. Joint projects with Ford, in which car parts and technology are shared, have climbed from 10 percent in fiscal year 2000 to 50 percent now.
Executive Vice President John Parker said Mazda has room for improvement.
“We still believe there’s a lot more work to be done,” he said.
Mazda shares rose 2 percent to close at 328 yen ($3.11) in Tokyo trading Tuesday.
By Yuri Kageyama / Associated Press
TOKYO -- Japanese automaker Mazda Motor Corp. reported a 68 percent jump in profit Tuesday in the first half of the fiscal year and raised its outlook for the full year, citing strong sales in Europe.
Mazda, 33.4 percent owned by Ford Motor Co., recorded group net profit of 18.7 billion yen ($177 million) in the six months ended Sept. 30, up from 11.2 billion yen the same period a year ago.
Sales surged 9.2 percent to 1.3 trillion yen ($12.5 billion) from 1.2 trillion yen.
The company did not break out quarterly figures.
Mazda continued to record strong sales in Europe on the popularity of new products such as the Mazda3 sedan, also known as the Axela.
Mazda President Hisakazu Imaki said the automaker plans to maintain growth over the next decade by investing in research, strengthening its position in key markets and cutting costs.
“We have made solid progress, but I am not yet totally satisfied. We must further accelerate our momentum,” he said.
For the full year ending March 31, 2005, Mazda raised its profit forecast to 37 billion yen ($350 million) from 34 billion yen ($322 million) with operating profit reaching a record high for the Hiroshima-based company. The new forecast is up 9 percent from 34 billion yen marked the previous year.
The automaker raised its sales projection to 2.71 trillion yen ($25.7 billion) from an earlier 2.66 trillion yen ($25 billion). The new target is below the 2.91 trillion yen in sales Mazda recorded for fiscal 2003.
Mazda officials said the company was headed to its best profits since 1985. The key is keeping the momentum going in Europe while gaining more ground in Japan and recovering in the difficult U.S. market, they said.
Over the first fiscal half, Mazda sold more cars in all key regions except the United States.
In Japan, it sold 135,000 vehicles during the six months, up 1 percent from 134,000 the same period a year ago. In Europe, Mazda’s sales climbed 20 percent to 143,000 vehicles from 119,000. But in the United States, Mazda sold 140,000 vehicles, down 3 percent from 144,000.
The company expects to sell 1.13 million vehicles globally for the full year through March 2005, down nearly 8 percent from 1.22 million in fiscal 2003. But Mazda hopes to reverse the slide and sell 1.25 million vehicles a year by fiscal 2006 by launching new models.
Mazda plans to offer 16 new products around the world from this fiscal year through fiscal 2006, although officials refused to give details on a regional breakdown or models in the works. It also plans to strengthen dealer networks in the United States, China and Japan.
Cooperation with Ford, based in Dearborn, Mich., is another plus, according to Mazda. Joint projects with Ford, in which car parts and technology are shared, have climbed from 10 percent in fiscal year 2000 to 50 percent now.
Executive Vice President John Parker said Mazda has room for improvement.
“We still believe there’s a lot more work to be done,” he said.
Mazda shares rose 2 percent to close at 328 yen ($3.11) in Tokyo trading Tuesday.