TOKYO (AFX) - Mazda Motor Corp, Japan's fifth-largest automaker, said first
half to September net profit soared 68 pct from a year earlier to 18.7 bln yen,
due to increased vehicle sales in Europe and cost-cutting.
After announcing the stronger-than-expected profit growth, Mazda revised its
full-year forecast upwards, projecting a net profit of 37 bln yen, current
profit of 74 bln, and operating profit of 78 bln, on revenue of 2.71 trln.
Previously, the company had forecast net profit of 34 bln yen, current profit of
65 bln, and operating profit of 70 bln, on revenue of 2.66 trln.
"The success of newly launched cars such as Mazda 3 (known as Axela in
Japan), cost-cuts, and an improved product mix will allow us to post a record
operating profit in the full year, as the combination of these factors will
offset the impact of a stronger yen and soaring material prices," Mazda deputy
general manager Nobuyoshi Tochio said at a news conference.
In the first half, current profit rose 94.4 pct to 36.9 bln yen and
operating profit increased by 53.1 pct to 43.5 bln, as revenue grew by 9.2 pct
to 1.32 trln.
The Japanese automaker, 33.3 pct owned by Ford Motor Co, said it sold
530,000 vehicles worldwide, up 0.7 pct from 526,000 a year earlier.
"Sales were particularly strong in Europe due to the success of the Mazda 3
and RX-8... and at the retail level, we registered the 25th straight monthly
sales increase there," Tochio said.
In Europe, vehicle shipments jumped 15.4 pct from a year earlier to 143,000
units in the first half.
Mazda shipped 141,000 vehicles in Japan in the first half, down 0.1 pct from
a year earlier, but the strong demand for its Axela and Verisa passenger car
models helped limit the decline caused by a drop in commercial vehicles.
In the US, shipments declined 2.4 pct from a year earlier to 157,000 units
in the first half, but Tochio said that as far as the passenger car segment is
concerned, sales "increased nearly 9 pct from a year earlier."
"In the US, we will see a rebound in sales, and we will boost annual
production capacity for Axela to 320,000 units in the second half, from 140,000
units in the first half," Tochio said.
"Besides, profitability in the US has already improved thanks to strong
demand for high-margin Axela," he said.
The Axela's margin has been boosted by a cut in the sales incentive per unit
to 2,100 usd in the first half from 2,400 usd a year earlier.
Mazda shipped 89,000 vehicles to China in the first half, down 11.2 pct from
a year earlier, but Tochio revealed sales in China rose 40 pct from a year
earlier to 75,000 units.
"We are on the right track to achieve 300,000 vehicle sales in China in
2010," he said.
Mazda estimated that increased vehicle sales and the improved product mix
combined to make a positive contribution of 18.2 bln yen to the first half
operating profit, while cost-cutting efforts boosted operating profit by 26.3
bln yen.
On the other hand, the appreciation of the yen slashed first half operating
profit by 2.6 bln yen.
For the year to March 2005, Mazda forecast global vehicle shipments of 1.13
mln units, up from 1.08 mln units sold a year earlier, led by a 12.5 pct rise in
shipments to Europe to 290,000 units.
In Japan, Mazda forecast year to March 2005 shipments of 305,000 vehicles,
up 4.7 pct from a year earlier, while projecting US shipments of 345,000 units,
up 5.5 pct.
Mazda has also unveiled a new mid-term business plan, calling for operating
profit of over 100 bln yen, and global shipments of 1.25 mln vehicles to be
achieved in the year to March 2007.
Under the new three-year plan, the company will release 16 new vehicles, up
from 9 models launched between the year to March 2002 and the year to March
2004.
"Rather than launching the same model globally, we will release models that
match the need of each market, and as part of that decision, we will release 3
new SUVs in the US that are dedicated only to the US market," Tochio said.
Yasuhiko.Seki@xfn.com
ys/dk/tr
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