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Transportation equipment industry

Mazda Reports First Annual Profit in Six Years, Expects Record Profits and Increased Sales

Strategic Insights

— 1 min read

The Mazda Motor Corporation has reported its first annual profit in six years, marking its best results in 14 years. The Japanese car maker, controlled by the Ford Motor Company, earned 38.7 billion yen, or about $321 million, in the fiscal year that ended on March 31. The company attributed its improvement in earnings to lower costs, increased market share in Japan, and better profitability in North America and Europe.

Key Takeaways:

  • Mazda reported its first annual profit in six years, with earnings of 38.7 billion yen, or about $321 million, in the fiscal year that ended on March 31.
  • The company attributed its improvement in earnings to lower costs, increased market share in Japan, and better profitability in North America and Europe.
  • Mazda's sales rose less than 1 percent, to 2.06 trillion yen, or $17.1 billion, in the same period.
  • The company's debt fell by $56.4 million, to slightly more than $6 billion.
  • Mazda predicted it would set record profits and increase sales in the fiscal year that ends next March, a period during which other Japanese car companies are expecting their profits to slide.
  • The company's president, James E. Miller, expressed confidence in the company's turnaround, citing the success of various initiatives and approaches implemented over the past several years.
  • Analysts were impressed with Mazda's performance, but cautioned that the company must now prove that it can sell more cars and fix the financial and operational problems of its heavily indebted dealers and parts manufacturers.

Statistics:

  • 38.7 billion yen: Mazda's earnings for the fiscal year that ended on March 31.
  • $321 million: Equivalent value of Mazda's earnings in US dollars.
  • 2.06 trillion yen: Mazda's sales for the fiscal year that ended on March 31.
  • $17.1 billion: Equivalent value of Mazda's sales in US dollars.
  • $56.4 million: Amount by which Mazda's debt fell.
  • 6 billion: Mazda's total debt, slightly less than before the decline.
  • 40 billion yen: Mazda's target earnings for the fiscal year that ends next March.
  • 2.6 trillion yen: Mazda's target sales for the fiscal year that ends next March.
  • 13 percent: Planned increase in Mazda's sales in Europe this fiscal year.

Sources:

  • The New York Times
  • The Wall Street Journal
  • Jardine Fleming Securities

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