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Mazda Announces First Half Financial Results for Fiscal Year 2008

- Global sales volume up 6 percent year-on year as product-driven growth continues -

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FY2008 First Half Overview

Global sales volume up 6 percent year-on-year to 701,000 units
Consolidated sales revenue down 5 percent year-on-year to 1,575.5 billion yen
Consolidated operating profit down 17 percent year-on-year to 60.7 billion yen
Consolidated net income up 2 percent year-on-year to 29.5 billion yen
FY2008 full-year forecast reflects material price hikes and the deterioration of the global sales environment


HIROSHIMA, Japan—Mazda Motor Corporation today reported its financial results for the first half of fiscal year (FY) 2008 (April-September) and its full-year forecast.


FY2008 First Half Results
In the first half of FY2008, Mazda’s global sales volume was 701,000 units, up 6 percent year-on-year, on contributions from the Mazda2 (known as the Demio in Japan) and Mazda6 (Atenza) which were launched last fiscal year. Consolidated sales revenue was 1,575.5 billion yen, a 5 percent decrease compared to FY2007 first half results, due to a change in accounting standards and the impact of exchange rates. Operating profit for the first half of FY2008 was 60.7 billion yen, down 17 percent compared with the prior year, but 10.7 billion yen better than Mazda’s original forecast announced at the beginning of this fiscal year. The operating profit decline was a result of the exchange impact of the stronger yen against key currencies and material price hikes which exceeded volume and model mix improvements. Ordinary profit was 48.5 billion yen, down 16 percent year-on-year. However, consolidated net income was up 2 percent to 29.5 billion yen.


On a geographic basis, retail sales volumes for the first half improved year-on-year in Europe, China and in other regions. In Japan, Mazda recorded 123,000 unit sales, about the same as a year ago. With contributions from new model launches – including the new Mazda Biante and new Mazda6 (Atenza) – market share in Japan increased 0.1 percentage points, to 5.1 percent, despite a contraction in new vehicle market demand. In North America, Mazda’s sales declined 6 percent year-on-year to 200,000 units. However, Mazda’s U.S. market share improved 0.1 points, to 1.9 percent, attributable to the launch of the new North American Mazda6, and strong sales of the Mazda3 and Mazda5 on robust demand for small cars. In Europe, first-half sales increased 17 percent year-on-year to reach 179,000 units, reflecting continued growth due to contributions from the new Mazda2, new Mazda6, Mazda CX-7, and Mazda3. Sales in China were up 53 percent over the prior year, to 63,000 units. Sales in other global markets rose 5 percent to 136,000 units.


Mazda’s Representative Director, Senior Managing Executive Officer and CFO, David E. Friedman, said, “Mazda achieved better year-on-year sales volume performance in the first half of fiscal year 2008, led by the successful launch of our new models last fiscal year and the great reception they have received. We also beat our initial first half operating profit forecast, announced at the beginning of the fiscal year. However, we expect the third quarter and onward to present a challenging business environment. To meet the challenges ahead, Mazda will continue to accelerate business efficiency and cost innovation initiatives in addition to improving brand value.”


FY2008 Financial Forecast
Mazda’s FY2008 full-year forecast has been revised downward, reflecting a slowdown in the global sales environment and material price hikes. Global sales volume was revised down to 1,405,000 units, mainly reflecting downward revisions to the sales plan in China and for all major markets except Europe. Sales revenue is projected to be 3 trillion yen, down 14 percent compared to FY2007. Operating profit is forecast to decrease 44 percent to 90.0 billion yen, and net income is projected to be 50.0 billion yen, down 46 percent. Hedging for the third quarter and onward has already been mostly completed, so the outlook is for minimal impact of future exchange rate fluctuations on ordinary profit and net income.


  FY2008 full-year projections FY2007
financial results
Increase or decrease Note: FY2008 projections disclosed in April 2008
Global retail volume 1,405,000 units 1,363,000 units up 3% 1,480,000 units
Revenue 3,000.0 billion yen 3,475.8 billion yen down 14% 3,000.0 billion yen
Operating profit 90.0 billion yen 162.1 billion yen down 44% 115.0 billion yen
Ordinary profit 90.0 billion yen 148.5 billion yen down 39% 110.0 billion yen
Profit before tax 83.0 billion yen 143.1 billion yen down 42% 110.0 billion yen
Net income 50.0 billion yen 91.8 billion yen down 46% 70.0 billion yen


Exchange rate

Yen / U.S. dollar 103 yen 114 yen -11 yen 100 yen
Yen / Euro 152 yen 162 yen -10 yen 150 yen


Dollar/Euro Equivalent

FY2008 First Half Financial Results Unit: millions
  Yen US$ Euro
Revenue 1,575,500 15,203.1 10,576.0
Operating profit 60,700 585.7 407.5
Ordinary profit 48,500 468.0 325.6
Net income 29,500 284.7 198.0

Financial results

Dollar equivalents compiled at 103.63 yen to the dollar. (Exchange rate prevailing on Sept. 30, 2008.)
Euro equivalents compiled at 148.97 yen to the Euro. (Exchange rate prevailing on Sept. 30, 2008.)


The projections for FY2008 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.


For additional financial information, please visit the Investor Relations section in the Mazda official website at