Mazda First Quarter Operating Profit rises 30 percent to 29.6 Billion Yen
FY2006 Consolidated 1st Quarter Highlights:
HIROSHIMA, Japan—Mazda Motor Corporation today announced its financial results for the first three months of fiscal year (FY) 2006.
For the first quarter, Mazda's worldwide revenue increased year-on-year by 9 percent to 734.3 billion yen. This is due to an improved model mix and weaker yen against other major currencies. Operating profit rose 30 percent year-on-year to 29.6 billion yen, with ordinary profit also increasing by 12 percent to 24.0 billion yen. Worldwide net income increased by 6.2 billion yen to 6.6 billion yen.
On a geographic basis, Japan's first quarter retail sales dropped 6 percent to 62,000 units when compared to the same period last year. This was due to a major drop in industry demand for registered vehicles, although the new Mazda MPV and micro-minis competed strongly. In the American market, healthy sales of the Mazda5 and Mazda MX-5 contributed to a 3 percent increase to 73,000 units. In Europe, continuing popularity of the Mazda5 and Mazda MX-5 saw sales increase by 10 percent to reach 76,000 units. In China, the figure was 29,000 units, down 24 percent from the same period last year.
Overall, consolidated wholesales fell to 272,000 units, down 2 percent year-on-year. The decline was planned and is mainly due to model changeovers and the one-time effect of restructuring European sales companies into wholly owned Mazda subsidiaries. Mazda CX-7, which was recently and successfully launched into the North American market, posted buoyant initial wholesales.
Mazda's full year FY2006 sales forecast remains unchanged from that announced on April 28, with consolidated wholesales up 5 percent to 1.21 million units. Consolidated revenue is expected to increase 6 percent to 3,100 billion yen, full-year operating profit is expected to rise 9 percent to 135 billion yen and net income is projected to climb 12 percent to 75 billion yen.
Mazda Representative Director, Senior Managing Executive Officer and Chief Financial Officer David E. Friedman said, "We have achieved year-on-year profit gains across the board for the first quarter. We are pleased to grow our operating margin to 4.0 percent from 3.4 percent for the same period in 2005, demonstrating continued improvement in our business structure.
"Mazda's mid-term business plan, Mazda Momentum continues on track. Our product-led growth is driving forward with the introduction of new vehicles, namely Mazda CX-7 and Mazda MX-5 with a Power Retractable Hard Top globally and the Mazda CX-9 in the North American market."
-Dollar equivalents compiled at 117.48 yen to the dollar
-Euro equivalents compiled at 142.80 yen to the Euro