Mazda Motor Corporation has published its latest consolidated financial results, for the Fiscal Year (FY) 1 April 2011 through 31 March 2012. After struggling with falling sales during the first three quarters of the FY, Mazda rebounded in the 4th quarter (Q4) and returned to profitability in all areas – with operating income jumping by * 47 percent to 143 million Euros. Ordinary income rose 54 percent to 195 million Euros in the 4Q as well. With 5.6 billion Euros from sales during Q4, Mazda was able to achieve a net income of 47 million Euros.
Despite this positive result in Q4, the Japanese carmaker was down for the entire FY compared to the same period last year, booking a decline in sales of 12.6 percent to 18.7 billion Euros*, and a net loss of 988 million Euros. Operating losses stood at 355 million Euros, while losses in ordinary income were 338 million Euros. There were several reasons for these results. They include the financial crisis in Europe, the effects of the tragic earthquake in Japan in March 2011, the flood in Thailand and the continuing strength of the Yen. Weakening sales in China played a role as well.
Global sales for Mazda during the last FY were down slightly compared to the previous FY, by 2 percent, to 1,247,000 units. However, Mazda rebounded in Q4 and sold 356,000 vehicles, which is an increase of 12.7 percent. Contributing to this rebound was the successful launch of the new Mazda CX-5, which has exceeded company expectations and caused huge interest around the globe.
* The exchange rates used for calculations Euro values in this press release were – 109 Yen/Euro (for FY 1 April 2011 through 31 March 2012) and 105 Yen/Euro (for FY 1 April 2012 through 31 March 2013).
In Japan sales were about the same as the year before with ca. 206,000 units, while in North America Mazda achieved a plus of 8.6 percent to 372,000 units. Sales were down 13.6 percent to 183,000 units in Europ e, and in China sales dropped 5.6 percent to 223,000 units. In all other markets, Mazda sales were down 4.7 percent with a total of 263,000 units.
** Financial Forecast for FY 2012 -2013 Mazda’s business development during the beginning of the current FY (ending 31 March 2013) will continue to be influenced by a strong Yen, the European financial crisis and economic development in emerging markets. By continuing its structural reform plan, however, Mazda is optimistic. The company’s goal for the current FY is profitable growth in all business areas with a forecasted rise in global vehicle sales of 7.5 percent to 1,340,000 units. Fuelling this growth in sales will be the new CX-5, which will probably outperform its original objective of 160,000 units. In fact, Mazda is considering increasing production capacities for the compact SUV, which is the first Mazda model equipped with new, innovative SKYACTIV Technology. The second model with a complete package of SKYACTIV Technology will be the next-generation Mazda6, which the company will launch successively around the world during this FY.
Mazda Motor Corporation projects income from net sales to increase during the current FY to 21 billion Euros, which will raise operating income to 286 million Euros and ordinary income to 143 million Euros. The company is also forecasting a net income of 95 million Euros.
** This financial forecast and other descriptions of the future presented in this press release are an outlook based on judgments and projections we made using information presently available. The actual financial performance may vary significantly due to various factors beyond Mazda’s control – the development of the global economy, for example, developments in the automobile industry or currency rates. As such, the financial forecast and future descriptions here are subject to uncertainties and risks. Neither Mazda nor any third party can assume responsibility for losses or damages incurred by any person who invests in Mazda Motor Corporation using information in this press release.