Mazda may miss debt reduction target for 2005 - Ford Forums - Mustang Forum, Ford Trucks, Ford Focus and Ford Cars
Ford Forum Ford Forum

» Auto Insurance
» Featured Product
» Wheel & Tire Center

Go Back   Ford Forums - Mustang Forum, Ford Trucks, Ford Focus and Ford Cars > Ford Cars and PAG Vehicles > Mazda Forum
Register Home Forum Active Topics Photo Gallery Auto Loans Insurance Garage Mark Forums Read Auto Escrow

Mazda Forum This area is for discussion of Mazda vehicles is the premier Ford Forum on the internet. Registered Users do not see the above ads.
LinkBack Thread Tools Display Modes
Old 05-02-2003, 23:19   #1 (permalink)
Registered User
Stacy94PGT's Avatar
Join Date: Feb 2001
Location: The Hills of North Georgia,USA
Posts: 7,859
Mazda may miss debt reduction target for 2005

Friday, May 2, 2003

By Detroit News staff reports, Bloomberg News and wire services

TOKYO -- Mazda Motor Corp., which owes 678 billion yen ($5.7 billion), may sell bonds or seek bank loans this year to invest in new models and repay existing borrowings, making it likely it will miss a debt reduction target.

Japan's fifth-largest automaker, a third owned by Ford Motor Co., plans to reduce its net debt to 50 percent of shareholders' equity by March 2005 from 208 percent. Mazda, which has net debt, or gross debt minus cash, of 404 billion yen, has reduced borrowings by nearly two-thirds in the past seven years.

"It's quite possible (reaching the target) could take longer than 2004," Gideon Wolthers, Mazda's Chief Financial officer, said in an interview referring to the year ending March 2005. "The important thing is the objective remains the same. We continue to focus on debt and we're making good progress."

Mazda's dilemma is either to reduce and lower interest costs or invest in new products to help boost earnings, as it doesn't have substantial non-auto assets to sell. The company aims to spend 3.6 percent more on research this year and is working with Ford developing models like the revamped Familia sedan.

"Mazda doesn't have many options at hand to reduce debt, so they have to use cash flow," said Norihito Kanai, who helps manage the equivalent of $2.5 billion at Meiji Dresdner Asset Management Co. "It's a matter of how they can invest more efficiently with Ford to increase returns from their investment."
My first car was a 67 Mustang Coupe, 2nd one was a 67 Cougar XR-7, 3rd one was a 66 Mustang Coupe. Why did I get rid of these cars for ? I know why, because I'm stupid, stupid, stupid.

My next Ford.....
Stacy94PGT is offline   Reply With Quote
Sponsored Links

  Ford Forums - Mustang Forum, Ford Trucks, Ford Focus and Ford Cars > Ford Cars and PAG Vehicles > Mazda Forum

Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)
Thread Tools
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are On
Pingbacks are On
Refbacks are On

Similar Threads
Thread Thread Starter Forum Replies Last Post
Mazda Motor's Booth needs to boost demand for Mazda6 Stacy94PGT Mazda Forum 0 05-12-2003 07:12
Mazda MX Sportif Design Concept Hints at an All-New Mazda RPO83 Mazda Forum 2 03-04-2003 21:09
Preview: 2004 Mazda RX-8 Stacy94PGT Mazda Forum 2 11-15-2002 23:02
Mazda To Strengthen Domestic Dealer Network RPO83 Mazda Forum 0 10-31-2002 03:30
Mazda banking on use of Ford platforms to help ensure profits Stacy94PGT Mazda Forum 0 05-29-2002 08:37

Powered by vBadvanced CMPS v3.2.2

All times are GMT -7. The time now is 16:56.

Powered by vBulletin® Copyright ©2000 - 2015, Jelsoft Enterprises Ltd.
Content Relevant URLs by vBSEO 3.6.0
Garage Plus vBulletin Plugins by Drive Thru Online, Inc.