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Mazda Motor Corporation today reported its financial results for the first nine months (April to December) of fiscal year (FY) 2008 and announced its full year financial projections.
FY2008 Third Quarter (April-December) Results
Mazda’s consolidated sales revenue was 2,087.9 billion yen in the first nine months of FY2008, down 17 percent over the same period in FY2007. Operating profit was 36.5 billion yen, down 66 percent versus the prior year, reflecting the yen’s appreciation against key currencies and a sharp deterioration in the global sales environment. Ordinary profit decreased 42 percent year-on-year to 52.1 billion yen, reflecting forward exchange contract gains. Consolidated net income was 28.9 billion yen, down 36 percent compared to the same period last year.
Mazda sold 964,000 vehicles globally in the first nine months of FY2008, down one percent versus the same period in 2007, due to a sharp slowdown in sales which began in the third quarter.
In Europe, Mazda achieved a year-on-year sales increase of six percent, to 242,000 units. Retail sales in China rose 38 percent over the prior year to 97,000 units, thanks to a sales boost resulting from the introduction of the new Mazda2 and a strong contribution from Mazda6 sales.
The sales volume in Japan was 164,000 units, down six percent year-on-year despite the newly launched Mazda Biante and Mazda Atenza (known as Mazda6 overseas) models’ positive effect on sales.
North American sales were 271,000 units through the third quarter, down 10 percent when compared to the first nine months of fiscal 2007. Of this, the US sales volume was 186,000 units. The new Mazda6 was well received, but this did not offset lower sales of existing models, resulting in a year-on-year decline of 14 percent. Mazda’s share in the US rose 0.1 points during this period.
In other markets, combined total sales volume was down five percent to 190,000 units.
FY2008 Full Year Forecasts
Mazda has revised all FY2008 full year projections downward, reflecting the sharp deterioration in the sales environment of global markets since October, and the expected impact of a further appreciation of the yen against key currencies. Sales revenue is projected to come in at 2,550.0 billion yen, a decrease of 27 percent compared with the prior year. Operating profit is forecast to be down 187.1 billion yen, resulting in an operating loss of 25 billion yen. However, ordinary profit is forecast to be limited to a loss of 15 billion yen mainly due to exchange hedging, and net income is projected to be negative 13 billion yen. Due to the rapid deterioration in business conditions, the share dividend has not been determined yet.
Mazda’s full year global retail sales forecast has been reduced to 1.24 million units, down 123,000 units compared to the prior year. This mainly reflects the sharp decline in sales in Europe and in other markets, where strong sales were achieved in the first half of the fiscal year. We now project year-on-year sales declines in all markets except China.
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