- Operating profit up 18 percent to record 82.9 billion yen
HIROSHIMA, Japan--Mazda Motor Corporation today reported its financial results for fiscal year 2004 and provided its forecast for FY2005. Operating profit in FY2004 was up 18 percent to 82.9 billion yen, an all-time high. Consolidated wholesales grew by 3 percent year-over-year while revenue, at 2,695.6 billion yen, increased by 5 percent. Net income rose 35 percent to 45.8 billion yen, an all-time high.
Profit growth in FY2004 was attributed in the most part to continued strong growth in Europe and the company’s success in driving down costs with its Achieve Best Cost (ABC) initiative. Mazda has now achieved the commodity-focused cost reduction target of 25 percent established at the inception of the ABC initiative three years ago.
On April 27, Mazda restarted full operations at its Ujina No.1 plant (U1). In December of last year, the U1 paint shop was destroyed in a fire. The rapid plant reconstruction and production recovery was facilitated by a module-based construction system, and now, similar to all Mazda production plants in Japan, the U1 facility utilizes Mazda’s efficient and environmentally friendly Three-Layer Wet Paint system.
“Our FY2004 results are particularly satisfying as we faced a number of hardships in the past year, most notably the fire at the Ujina No.1 plant,” said Mazda Representative Director and Chief Financial Officer Gideon Wolthers. “It is a testament to the entire Mazda team that we were able to stay the course and achieve record operating profits.”
Financial Results for FY2004
Consolidated cash flow was positive 35.9 billion yen. Mazda’s net debt was reduced by 44.6 billion yen during FY2004 and now stands at 313.5 billion yen. The company’s net debt-to-equity ratio is now 117 percent, down from 161 percent at the end of FY2003.
Mazda plans to increase its annual dividend to 3 yen per share, up 1 yen from FY2003.
(Note: FY2003 revenue and wholesale numbers presented in this press release have been restated on a 12-month basis.)
Financial Projections for FY2005
Revenue is forecast to be 2,840 billion yen, an increase of 144.4 billion yen, or 5 percent, from year-ago levels. Operating profit is forecast to reach 90 billion yen in FY2005. Net income is forecast to grow by 20 percent to 55 billion yen
Mazda expects to grow wholesale volume by 7 percent in FY2005, reflecting continued strong global demand for Axela/Mazda3 and the introduction of the all-new Premacy/Mazda5 and Roadster/MX-5, both of which will be launched into key global markets during FY2005.
Projected financial results for FY2005
Mazda President and CEO Hisakazu Imaki said, “In FY2005, our plan is to continue our present progress and foundation building under Mazda Momentum, our new mid-term plan. Though Mazda is growing steadily, we should not be satisfied yet. We must stay the course even more resolutely. The steep rise in raw material costs has created a very tough situation. As stated in Mazda Momentum, we will focus our efforts by strengthening key markets, reinforcing R&D, enhancing efficiency and synergies on a global scale and developing our people.”Dollar/Euro Equivalent
-Dollar equivalents compiled at 107.32 yen to the dollar
-Euro equivalents compiled at 138.75 yen to the Euro
-Dollar equivalents compiled at 105 yen to the dollar
-Euro equivalents compiled at 135 yen to the Euro
Go to “Investor Relations” at the Mazda Official Website for additional information.
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