Mazda latest Japanese automaker to issue profit warning

TOKYO – Mazda Motor Co. slashed its profit guidance for the just-ended fiscal year, warning that net income will plunge 81 percent because of the impact of the COVID-19 pandemic.

Net profit will tumble to 12.1 billion yen ($112.2 million) in the fiscal year ended March 31, the company said in its Tuesday notice to investors. The company had earlier predicted net income would take a lesser 32 percent fall to 43.0 billion yen ($398.8 million) in the 12-month period.

Operating profit is now see falling 47 percent, worse than the earlier outlook for a 27 percent decline. Mazda sees global sales retreating to 1.419 million vehicles. That is also downgraded from the Japanese carmaker’s earlier forecast for a 4 percent sales slide to 1.5 million units.

Mazda issues its full financial report on May 14, but the warning comes as automakers worldwide reel from the impact of plunging demand, suspended production and broken supply chains.

Nissan and Mitsubishi had earlier warned they would book full fiscal year net losses. Meanwhile, Honda on Tuesday reported that it swung to net and operating losses in the just-ended fiscal year and Toyota said its net income dropped 86 percent.