Mazda Reports First Quarter Financial Results for Fiscal Year 2008
FY2008 First Quarter Overview
HIROSHIMA, Japan—Mazda Motor Corporation today reported its financial results for the first quarter (April to June) of fiscal year (FY) 2008.
Mazda’s first quarter global retail volume increased 11 percent year-on-year to reach 358,000 units. This is attributable to strong sales of the Mazda2 (known in Japan as the Mazda Demio), Mazda3 (Mazda Axela) and Mazda6 (Mazda Atenza). Consolidated sales revenue was 771.8 billion yen, down 5 percent year-on-year. Excluding the impact of accounting standard changes, revenue would have improved 5 percent. Consolidated operating profit decreased 12 percent to 28.3 billion yen as a result of raw material price hikes, a weaker US dollar, and other factors. Consolidated ordinary profit increased by 8 percent year-on-year to 22.9 billion yen, primarily reflecting the result of forward exchange contracts and equity method profits. Consolidated net income was 15.0 billion yen. Excluding the impact of taxation accounting changes, net income recorded a 43 percent increase.
On a geographic basis, retail sales volumes increased year-on-year in every major market except Japan. Sales in North America were up year-on-year to 109,000 units. This reflects a 3 percent increase in U.S. sales, due to the change in market conditions, which helped maintain brisk sales of the Mazda3, and continued strong sales in Mexico. Retail sales in Europe rose 20 percent to 93,000 units, due to a strong contribution from the all-new Mazda2 three-door hatchback and diesel engine models, as well as the Mazda CX-7 and Mazda3.
In China, the introduction of the all-new Mazda2, as well as the Mazda3 five-door hatchback and Mazda5, helped increase sales to 33,000 units, more than double the prior year. In other markets, volumes grew 9 percent to 69,000 units, led by higher sales of the all-new Mazda2 and Mazda CX-9.
Mazda’s sales in Japan decreased 4 percent to 54,000 units as a result of the decline in sales of existing models, which offset the new model effect of the all-new Mazda Demio (Mazda2) and all-new Mazda Atenza (Mazda6). However, the new Mazda Biante, which launched in July 2008, received 3,000 advance orders and is expected to build sales momentum.
Mazda’s Representative Director, Senior Managing Executive Officer and CFO, David E. Friedman, said, “Mazda has achieved growing global sales in the first quarter of fiscal year 2008 despite difficult business conditions. The ever-popular Mazda3, as well as the all-new Mazda2 and all-new Mazda6, are finding homes with an increasing number of customers, driving our growth, particularly in Europe and China. While we aim to maintain steady product-led growth, due to the uncertainty in exchange rates, raw material prices, and changing market conditions, our projections for the full 2008 fiscal year remain unchanged.”
FY2008 Projections Key Data
Please go to “Investor Relations” at the Mazda Official Website http://www.mazda.com/investors/ for additional financial information.