Mazda makes a profit, but N.A. losses increase
President Takashi Yamanouchi says deliveries in China probably will be down by 40 percent this quarter.
LOS ANGELES -- Mazda Motor Corp. swung to profitability from year-ago losses for the quarter ending Sept. 30 despite growing operating losses in North America, its largest market.
Operating losses in North America continued to grow, totaling ¥15.30 billion, or about $191.5 million, compared with a $180.3 million loss last year.
Globally, Mazda posted net income of $152.7 million in its fiscal second quarter, compared with a loss of $179 million, a year ago.
Operating income in the quarter improved to $121.4 million, from $18.8 million a year ago, while revenue fell to $6.47 billion, from $6.89 billion last year.
The improvements came from Japan, where operating profit more than quadrupled to $320.5 million.
Mazda's European business swung into an operating loss of $7.5 million from last year's $41.3 million profit.
Operations in other markets, including China and Thailand, improved to an operating profit of $56.3 million, up from $43.8 million last year.
Mazda lowered its forecast for operating income for the current fiscal year by 17 percent as sales slumped in China, Bloomberg reported.
Operating profit probably will be about $314 million in the fiscal year ending March 30, the company said.
President Takashi Yamanouchi said China deliveries probably will fall 40 percent this quarter and 20 percent in the next quarter because of lower sales in China.
"Dealers are conducting business as usual since October, but the recovery in showroom traffic and orders has been slow," Yamanouchi told reporters.
"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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