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Mazda First Quarter Operating Profit rises 30 percent to 29.6 Billion Yen

- No change to full-year operating profit and net income forecast for FY2006 -

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FY2006 Consolidated 1st Quarter Highlights:
- Operating profit up 30 percent to 29.6 billion yen
- Consolidated revenue up 9 percent to 734.3 billion yen
- Ordinary profit rises 12 percent to 24 billion yen


HIROSHIMA, Japan—Mazda Motor Corporation today announced its financial results for the first three months of fiscal year (FY) 2006.


For the first quarter, Mazda's worldwide revenue increased year-on-year by 9 percent to 734.3 billion yen. This is due to an improved model mix and weaker yen against other major currencies. Operating profit rose 30 percent year-on-year to 29.6 billion yen, with ordinary profit also increasing by 12 percent to 24.0 billion yen. Worldwide net income increased by 6.2 billion yen to 6.6 billion yen.


On a geographic basis, Japan's first quarter retail sales dropped 6 percent to 62,000 units when compared to the same period last year. This was due to a major drop in industry demand for registered vehicles, although the new Mazda MPV and micro-minis competed strongly. In the American market, healthy sales of the Mazda5 and Mazda MX-5 contributed to a 3 percent increase to 73,000 units. In Europe, continuing popularity of the Mazda5 and Mazda MX-5 saw sales increase by 10 percent to reach 76,000 units. In China, the figure was 29,000 units, down 24 percent from the same period last year.


Overall, consolidated wholesales fell to 272,000 units, down 2 percent year-on-year. The decline was planned and is mainly due to model changeovers and the one-time effect of restructuring European sales companies into wholly owned Mazda subsidiaries. Mazda CX-7, which was recently and successfully launched into the North American market, posted buoyant initial wholesales.


Mazda's full year FY2006 sales forecast remains unchanged from that announced on April 28, with consolidated wholesales up 5 percent to 1.21 million units. Consolidated revenue is expected to increase 6 percent to 3,100 billion yen, full-year operating profit is expected to rise 9 percent to 135 billion yen and net income is projected to climb 12 percent to 75 billion yen.


Mazda Representative Director, Senior Managing Executive Officer and Chief Financial Officer David E. Friedman said, "We have achieved year-on-year profit gains across the board for the first quarter. We are pleased to grow our operating margin to 4.0 percent from 3.4 percent for the same period in 2005, demonstrating continued improvement in our business structure.


"Mazda's mid-term business plan, Mazda Momentum continues on track. Our product-led growth is driving forward with the introduction of new vehicles, namely Mazda CX-7 and Mazda MX-5 with a Power Retractable Hard Top globally and the Mazda CX-9 in the North American market."


Dollar/Euro Equivalent
FY2006 First Quarter Financial Results Unit: millions
  Yen US$ Euro
Revenue 734,300 6,250.4 5,142.2
Operating profit 29,600 252.0 207.3
Ordinary profit 24,000 204.3 168.1
Net income 6,600 56.2 46.2
Financial Results
-Dollar equivalents compiled at 117.48 yen to the dollar
-Euro equivalents compiled at 142.80 yen to the Euro

The projections for FY2006 and future outlook mentioned in this press release are based on various uncertainties including 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.
Go to "Investors Relations" at the Mazda Official Website for additional financial information.