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Mazda Revises Fiscal Year 2009 Operating Profit Forecast Upward by 37 Billion Yen

- Projects a return to profitability in the second quarter of FY2009; full year operating loss now projected to be 13 billion yen -

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Revisions Highlights:

Mazda expects to achieve a return to profitability ahead of schedule; now forecast for the second quarter of fiscal year (FY) 2009.
Full year operating loss has been upwardly revised to 13 billion yen, a 37 billion yen improvement, attributable to strong sales, cost reductions, the impact of currency fluctuations, and other factors.
FY2009 first half global sales in all major markets are expected to outperform initial forecasts.
FY2009 full-year global sales volume is projected to be 1,155,000 units, up 55,000 units.
Continuing efforts are being made to accelerate changes in Mazda’s cost structure to ensure profitability when plants in Japan are operating at 80 percent capacity.


HIROSHIMA, Japan—Mazda Motor Corporation today announced upwardly revised projections for the full fiscal year through March 2010.


Projections for the first half of FY2009

The FY2009 first half initial projections were for sales revenue of 930 billion yen, an operating loss of 60 billion yen, and a 50 billion yen net loss. With the revised outlook, Mazda now forecasts sales revenue to be one trillion yen, a 70 billion increase. Operating loss is now projected to be 23 billion yen, a 37 billion yen improvement, and net loss to be 26 billion yen, a 24 billion yen improvement. These revised figures mainly reflect increased sales volumes since the initial forecasts. The revisions also reflect the depreciation of the yen against major currencies including the Euro.


Global sales are now expected to be 572,000 units in the first half, an increase of 29,000 units over the initial figure. This is due to expanded demand resulting from government economic stimulus measures in Japan, the United States, Europe, and other nations, and from the strong sales of the new Mazda3 (known as the Mazda Axela in Japan). Exchange rate assumptions for the first half are now 96 yen to the US dollar and 133 yen to the Euro versus the previously announced yen/dollar rate of 95 yen and yen/Euro rate of 125 yen.


Mazda’s return to profitability in operating profit/loss, initially forecasted to be in the second half of the fiscal year, is now projected to be achieved ahead of schedule and occur in the second quarter. This is attributable to contributions from further cost reduction actions in addition to the abovementioned factors.


Projections for full year FY2009

Mazda is also revising its full-year outlook for FY2009. Global sales are now projected to be 1,155,000 units, an increase of 55,000 units over the initial full-year estimate of 1.1 million units. Although the end of scrappage incentives in Europe are expected to adversely impact on the market in the second half, Mazda now expects to narrow the decline in global sales to 8 percent year-on-year on the full contribution of the new Mazda3’s global launch. FY2009 second half exchange rate assumptions are now 88 yen to the US dollar and 130 yen to the Euro. Based on the upward revisions to the first half and projections for the second half, the full-year outlook is for improved performance in each area, with revenue projected to be 2.13 trillion yen, an operating loss of 13 billion yen, and a net loss of 26 billion yen. Operating loss would be an estimated 37 billion yen improvement compared to the initial operating loss forecast of 50 billion yen.


Forecast Summary Table

  FY2009 Full-year Initial projections FY2009 Full-year projections after revisions Change
Sales revenue 2.03 trillion yen 2.13 trillion yen 100.0 billion yen
Operating profit/(loss) (50.0) billion yen (13.0) billion yen 37.0 billion yen
Global sales volume 1,100,000 units 1,155,000 units 55,000 units


At this time, all inventory adjustments which began last fiscal year have been completed, and production volume has been aligned with sales. Mazda is accelerating changes to its cost structure to ensure profitability when plants in Japan are operating at 80 percent capacity utilization. In addition, efforts continue to build a streamlined and robust corporate structure.


The projections for FY2009 shown in this press release are based on various uncertainties including without limitation the condition of the world economy in the future, automotive industry trends and the risk of exchange rate fluctuations Please be aware that Mazda’s actual performance may differ substantially from these projections. Please 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.