Mazda swings to profitable quarter despite N.A. operating losses
Company lowers outlook for fiscal year on China problems
LOS ANGELES -- Mazda Motor Corp. swung to profitability from year-ago losses for the quarter ending Sept. 30 despite ballooning operating losses in North America, the automaker’s largest market.
Mazda posted net income of ¥12.2 billion ($152.7 million) during its second fiscal quarter, compared with a loss of ¥14.4 billion ($179.0 million) a year ago, the company said in a statement today.
Operating income in the quarter improved to ¥9.7 billion ($121.4 million) from ¥1.5 billion ($18.8 million) a year ago, while revenue fell to ¥516.9 billion ($6.47 billion) from ¥551.1 billion ($6.89 billion) in last year’s second fiscal quarter.
The operating improvements came from Japan, where operating income more than quadrupled to an operating profit of ¥25.6 billion ($320.5 million) compared with ¥4.4 billion ($55.1 million) last year.
Operating losses in North America, Mazda’s largest vehicle sales market, continued to expand, totaling ¥15.3 billion ($191.5 million) compared to a ¥14.4 billion loss ($180.3 million) last year.
Mazda’s European business swung into an operating loss of ¥600 million ($7.5 million) from last year’s ¥3.3 billion ($41.3 million) operating profit.
Operations in other markets, including China and Thailand, improved to an operating profit of ¥4.5 billion ($56.3 million) compared to ¥3.5 billion ($43.8 million) last year.
Mazda lowered its operating income forecast for its current fiscal year by 17 percent as sales slumped in China, Bloomberg reported.
Operating profit will probably be ¥25 billion ($314 million) in the fiscal year ending March, compared with the previous ¥30 billion projection, the company said in the statement. Mazda lowered its revenue forecast 1.4 percent ¥2.17 trillion yen.
President Takashi Yamanouchi said China deliveries will probably fall 40 percent this quarter and 20 percent the next as Mazda followed Honda Motor Co. in cutting forecasts this week because of China. The aversion toward Japanese products in the world’s biggest auto market is undermining efforts by Mazda, which has been selling assets and improving gas mileage on models, to earn its first annual profit in five years.
“Dealers are conducting business as usual since October but the recovery in showroom traffic and orders has been slow,” Yamanouchi told reporters today. “As China remains an important market, Mazda will continue its dedication to production and sales in the country.”
Bloomberg contributed to this report.
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