Mazda Motor Corporation latest consolidated financial results for the fiscal year ending 31 March 2011 show global sales up year-on-year, along with strong increases in ordinary income and operating profit. These results were achieved despite the tragic earthquake in March, and nearly a year of unfavourable exchange rates that reduced revenues in regions outside of Japan where Mazda sells cars.
In response to a stronger Yen, Mazda increased net revenue and modified its product offering during the year to ensure profitability in all carlines, while continuing to reduce costs wherever possible. These efforts – combined with its strongest vehicle portfolio ever – resulted in global Mazda sales rebounding to 1.273 million units for the period 1 April 2010 through 31 March 2011, which is 7 percent higher year-on-year. Fuelling this increase were strong sales of core models Mazda2, Mazda3 and Mazda6, along with the successful launch of the all-new Mazda5 and continued success of Mazda’s outstanding SUV line-up with the CX-7 and CX-9. By the end of the fiscal year, ordinary income had increased by 694% to 1 307.2 million Euros and operating profits were up by 152% to 198.6 million Euros.
The tragic earthquake did not damage Mazda production facilities directly, but some dealer outlets and Japanese sales subsidiaries were damaged, and it caused major disruptions in parts supply. After an initial production stop, Mazda is now producing again and is gradually working towards full production. All this had a negative impact on Mazda’s overall results by making it impossible to forecast full-year production volumes or set operational targets for the fiscal year ending March 2012. As a result, Mazda had to write off a portion of the deferred tax assets for the reported fiscal year (ending March 2011) which contributed to a net loss of 500 million Euros.
1 Calculated at 120 Yen/Euro (exchange rate on 28 April 2011) Mazda will continue to implement plans and programs already underway.
This includes the launch of its highly-anticipated SKYACTIV Technologies in an exciting line-up of next-generation vehicles beginning later this year. The new Mazda brand campaign will also continue around the world as planned, as will programs to improve production plant efficiency, quality and cost structures.
“We plan to further raise our brand value in mature markets,” said Takashi Yamanouchi, Representative Director and Chairman of the Board, President and CEO of Mazda Motor Corporation in an internal statement to Mazda employees. “By doing so we aim to achieve further growth in the future.” For all of Mazda Motor Corporation’s consolidated financial results please see documents on our press portal published on 28 April 2011.