Mazda Announces First Half Financial Results for Fiscal Year 2007
HIROSHIMA, Japan—Mazda Motor Corporation today reported its financial results for the first half of fiscal year (FY) 2007 (April to September) and its full-year forecast.
FY2007 First Half Results
Consolidated cash flow for the first half of FY2007 was negative 8.5 billion yen, consisting of an operating cash flow of 40.3 billion yen less investments of 48.8 billion yen. Net debt was 287.5 billion yen, increased by 55.3 billion yen compared to the FY2006 year-end figure. Mazda will issue a dividend of 3 yen per share, its first interim dividend in 15 years.
Global retail volume was 659,000 units in the first half of FY2007, an increase of 1 percent over FY2006. On a geographic basis, due to the continued weak registered vehicle demand in Japan, domestic retail sales fell 6 percent to 123,000 units. However, Mazda’s market share in Japan increased 0.2 points year-on-year to 5.0 percent, thanks to sales of the all-new Mazda2 (known as the Demio in Japan) which have exceeded targets since its July launch, along with other factors. Sales in North America rose 7 percent year-on-year to 213,000 units, owing to strong sales results in the US and continued steady sales growth in Canada and Mexico. In Europe, Mazda’s retail volume remained at 153,000 units for the April-September period, unchanged compared to the same period in FY2006, as a decline in demand in Germany was offset by improved sales in Russia. In China, local production of Mazda brand vehicles in Hainan ceased, resulting in a 33 percent decrease in sales of Mazda vehicles to 41,000 units compared to the prior fiscal year. However, excluding the volume of Hainan-produced units, Mazda’s sales volume increased 78 percent, showing strong growth. Record sales in Australia, Israel, Venezuela and Ecuador led Mazda sales in other overseas markets, which rose 18 percent year-on-year to 129,000 units.
Mazda’s Chairman of the Board, President and CEO, Hisakazu Imaki, said: “With profits across the board increasing for the first half of fiscal year 2007, Mazda’s performance has exceeded our initial forecasts. Our dealer inventory adjustments in the US and Europe have been completed, and we anticipate stronger contributions from sales of the all-new Mazda2, Mazda CX-9 and all-new Mazda6 in the second half of the fiscal year. The Mazda Advancement Plan has had a smooth start but we recognize that we have a number of challenges ahead. We are therefore being prudent in our outlook, having given careful consideration to potential challenging external operating factors, such as the sub-prime mortgage issue, the crude oil and raw materials price hike impact, as well as fluctuating exchange rates. However, we see no reason to change our full-year projections and, looking ahead, we are confident that we will achieve our targets and continue Mazda’s steady growth.”
Financial Projections for FY2007
Mazda’s global retail sales are projected to grow 4 percent over the prior fiscal year to 1.36 million units. Forward currency exchange assumptions for the full-year are set at 115 yen to the dollar and 159 yen to the Euro.
FY2007 Financial Projections:
For additional financial information, please visit the Investor Relations section in the Mazda official website at www.mazda.com/investors/.