- First-half consolidated sales revenue up 13 percent year-on-year
to 1.52 trillion yen.
- Consolidated operating profit up 43 percent to 69.8 billion yen.
- Full-year operating profit outlook revised upwards to 148 billion yen.
HIROSHIMA, Japan—Mazda Motor Corporation today announced that its fiscal
year 2006 full-year forecast was being revised upwards based on record
levels of consolidated revenue, operating profit and ordinary profit
that were reached in the first half of FY2006.
FY2006 First Half Results
Mazda's consolidated revenue increased 13 percent in the April-September
period to 1.52 trillion yen. In spite of a rapid rise in the cost of
raw materials, consolidated operating profit rose 43 percent year-on-year
to 69.8 billion yen, a 21 billion yen improvement, largely supported
by an improved model mix and volume, favorable currency exchange rates
and cost reductions. Ordinary profit increased by 31 percent to 56.6
billion yen compared to the same period last year. Net income was 27.2
billion yen, down 12 percent year-on-year, due to an extraordinary
gain during the first half of the last fiscal year from the transfer
of the substitutional portion of Mazda's employee pension fund liabilities
to the Japanese government. Excluding the one-time impact of the gain
from the pension fund transfer and impairment losses, net income was
up 18 percent.
On a geographic basis, despite steady micro-mini sales in Japan, Mazda's
sales volume during the first half of FY2006 declined by 7 percent to
131,000 units, mainly due to diminished demand for registered vehicles.
In the US market, sales volumes increased 3 percent to 142,000 units,
attributable to the newly-launched Mazda CX-7 and contributions from
the Mazda5 and MX-5 models. Strong sales of the Mazda5 and MX-5 in Europe
led to 151,000 units sold there during the April-September period, an
increase of 10 percent year-on-year. Sales in China declined 8 percent
to 62,000 units in the first half amid a very competitive sales environment.
Overall, Mazda recorded 560,000 consolidated global wholesales for the
first half of FY2006, up 1 percent over last year.
Full-year Profit Projections for FY2006 revised upwards
Mazda is now forecasting a rise of 3 percent in global wholesales to
1.18 million units in FY2006 following a downward revision since the
last financial projections were released. Consolidated revenue is projected
to increase by 8 percent year-on-year to 3.15 trillion yen, with full-year
operating profit expected to rise 20 percent to 148 billion yen, and
consolidated net income up 23 percent to 82 billion yen.
Mazda Senior Managing Executive Officer and Chief Financial Officer
David E. Friedman said, “We are pleased to report a one percent
increase in Mazda's operating margins in the first half, to 4.6 percent,
reflecting the impact of an improved model mix in markets around the
globe. Although we anticipate an even more competitive operating environment
in the second half, opportunities such as the launch of the Mazda CX-7
in Japan and the introduction of the CX-9 in North America will ensure
our product-led growth continues on track as we execute the last phase
of the Mazda Momentum plan.”
FY2006 Financial Projections:
||3.15 trillion yen, up 230.2 billion (8 percent) on FY2005
||148.0 billion yen, up 24.6 billion yen (20 percent) on FY2005
||140.0 billion yen, up 38.5 billion yen (38 percent) on FY2005
||82.0 billion yen, up 15.3 billion yen (23 percent) on FY2005
|FY2006 Financial Results
| Ordinary profit
-Dollar equivalents compiled at 117.90 yen to the dollar (Exchange rate
prevailing on Sept.30, 2006).
-Euro equivalents compiled at 149.82 yen to the Euro (Exchange rate prevailing
on Sept.30, 2006).
The projections for FY2006 and future outlook shown in this
press release are based on various uncertainties including
without limitation conditions of the world economy in the future,
automotive industry trends and the risk of exchange rate fluctuations.
Note that neither Mazda nor any third party providing information
shall be responsible for any damage an individual may suffer
due to investment in Mazda based on the information contained
in this press release.