TOKYO -- Profits fell at Mazda Motor Corp. in the January-March
quarter, undercut by higher outlays for marketing and factory startups
and foreign exchange losses, despite rising sales.
The export-dependent Japanese carmaker also forecast annual net income to fall 12 percent in the current fiscal year, hurt by higher taxes and continued ramp-up costs of overseas plants.
At the same time, CEO Masamichi Kogai outlined fresh mid-term goals through the fiscal year ending March 2019. Dubbed “Stage 2” of Mazda’s structural reforms, they target an 18 percent increase in global sales to 1.65 million vehicles, from 1.397 million in the just-ended fiscal year.
Global operating profit fell 11 percent to 50.9 billion yen ($425.5 million) in the fiscal fourth quarter ended March 31, the Japanese automaker said today in a statement.
Net income tumbled 53 percent to 27.3 billion yen ($228.2 million) in the quarter.
The reversals came despite a 12 percent increase in global revenue to 840.3 billion yen ($7.02 billion) and a 4.2 percent increase in global sales to 394,000 vehicles.
Quarterly profit was undermined by a higher tax bill and big layouts to speed production at a new assembly plant in Mexico and a new transmission plant in Thailand. Mazda also splurged on marketing and promotion fees to launch the redesigned Mazda2 hatchback and CX3 crossover.
Foreign exchange rate losses also hurt. In contrast to recent quarters where the weakening yen helped earnings, the yen’s increase against some foreign currencies, including the ruble and euro, delivered a 1.9 billion yen ($15.9 million) foreign exchange rate loss in the fourth quarter.
Sales in North America, Mazda’s biggest market, inched forward 2.9 percent to 105,000 units in the fourth quarter, finishing the fiscal year up 9 percent at 425,000 vehicles.
Full-year records
Despite the fourth quarter setback, Mazda still notched record full-year results in every earnings category except revenue for the fiscal year ended March 31.
Operating profit climbed 11 percent to a record 202.89 billion yen ($1.70 billion), while net income surged 17 percent to another all-time high of 158.81 billion yen ($1.33 billion).
It was the second-straight year of record earnings in both categories.
Revenue increased 13 percent to 3.03 trillion yen ($25.36 billion), on the back of a 5 percent increase in global sales to 1.397 million vehicles. Global sales, also a record, were the highest since the 1.363 million units Mazda sold in the fiscal year ended March 31, 2004.
Looking ahead, Kogai said net income is expected to slide 12 percent to 140.0 billion yen ($1.17 billion) in the current fiscal year ending March 31, 2016. A higher tax bill will eat into profits after years of red ink, Mazda said. Operating profit is forecast to rise 4 percent.
Mazda expects revenue to climb 7 percent to 3.250 trillion yen ($27.17 billion), with worldwide sales growing 7 percent to 1.490 million vehicles.
North America volume will increase 6 percent to 449,000, Mazda predicted.
Stage 2
Stage 2 of Mazda’s restructuring plan revolves heavily around financial goals. Kogai said he wants to achieve an operating profit margin above 7 percent, compared with the 6.7 percent in the fiscal year ended March 31. Mazda just missed its target of 7 percent in the last fiscal year.
Kogai said another top priority will be building brand value and pricing power.
The company aims to maintain sales growth by introducing new and derivative models, though Mazda didn’t detail them. The plan includes four new models and one derivative, Kogai said.
Engineers will also be working on a second-generation Skyactiv drivetrain that will go to market sometime after the fiscal year ending March 31, 2019. The goal is to improve fuel efficiency by 50 percent over 2008 levels. By comparison, the first generation of Skyactiv vehicles still being rolled out achieves a 30 percent improvement over 2008 levels, Mazda said.
In the just-ended fiscal year, higher-margin Skyactiv vehicles accounted for 74 percent of Mazda’s lineup, boosting profits and brand value, Mazda said.
During Stage 2, Mazda also aims to expand global production 11 percent to 1.65 million vehicles, from 1.49 million. The company will strive to improve efficiency by exporting newly devised manufacturing processes from its Japan plants to other factories around the world.
Source: Autonews
The export-dependent Japanese carmaker also forecast annual net income to fall 12 percent in the current fiscal year, hurt by higher taxes and continued ramp-up costs of overseas plants.
At the same time, CEO Masamichi Kogai outlined fresh mid-term goals through the fiscal year ending March 2019. Dubbed “Stage 2” of Mazda’s structural reforms, they target an 18 percent increase in global sales to 1.65 million vehicles, from 1.397 million in the just-ended fiscal year.
Global operating profit fell 11 percent to 50.9 billion yen ($425.5 million) in the fiscal fourth quarter ended March 31, the Japanese automaker said today in a statement.
Net income tumbled 53 percent to 27.3 billion yen ($228.2 million) in the quarter.
The reversals came despite a 12 percent increase in global revenue to 840.3 billion yen ($7.02 billion) and a 4.2 percent increase in global sales to 394,000 vehicles.
Quarterly profit was undermined by a higher tax bill and big layouts to speed production at a new assembly plant in Mexico and a new transmission plant in Thailand. Mazda also splurged on marketing and promotion fees to launch the redesigned Mazda2 hatchback and CX3 crossover.
Foreign exchange rate losses also hurt. In contrast to recent quarters where the weakening yen helped earnings, the yen’s increase against some foreign currencies, including the ruble and euro, delivered a 1.9 billion yen ($15.9 million) foreign exchange rate loss in the fourth quarter.
Sales in North America, Mazda’s biggest market, inched forward 2.9 percent to 105,000 units in the fourth quarter, finishing the fiscal year up 9 percent at 425,000 vehicles.
Full-year records
Despite the fourth quarter setback, Mazda still notched record full-year results in every earnings category except revenue for the fiscal year ended March 31.
Operating profit climbed 11 percent to a record 202.89 billion yen ($1.70 billion), while net income surged 17 percent to another all-time high of 158.81 billion yen ($1.33 billion).
It was the second-straight year of record earnings in both categories.
Revenue increased 13 percent to 3.03 trillion yen ($25.36 billion), on the back of a 5 percent increase in global sales to 1.397 million vehicles. Global sales, also a record, were the highest since the 1.363 million units Mazda sold in the fiscal year ended March 31, 2004.
Looking ahead, Kogai said net income is expected to slide 12 percent to 140.0 billion yen ($1.17 billion) in the current fiscal year ending March 31, 2016. A higher tax bill will eat into profits after years of red ink, Mazda said. Operating profit is forecast to rise 4 percent.
Mazda expects revenue to climb 7 percent to 3.250 trillion yen ($27.17 billion), with worldwide sales growing 7 percent to 1.490 million vehicles.
North America volume will increase 6 percent to 449,000, Mazda predicted.
Stage 2
Stage 2 of Mazda’s restructuring plan revolves heavily around financial goals. Kogai said he wants to achieve an operating profit margin above 7 percent, compared with the 6.7 percent in the fiscal year ended March 31. Mazda just missed its target of 7 percent in the last fiscal year.
Kogai said another top priority will be building brand value and pricing power.
The company aims to maintain sales growth by introducing new and derivative models, though Mazda didn’t detail them. The plan includes four new models and one derivative, Kogai said.
Engineers will also be working on a second-generation Skyactiv drivetrain that will go to market sometime after the fiscal year ending March 31, 2019. The goal is to improve fuel efficiency by 50 percent over 2008 levels. By comparison, the first generation of Skyactiv vehicles still being rolled out achieves a 30 percent improvement over 2008 levels, Mazda said.
In the just-ended fiscal year, higher-margin Skyactiv vehicles accounted for 74 percent of Mazda’s lineup, boosting profits and brand value, Mazda said.
During Stage 2, Mazda also aims to expand global production 11 percent to 1.65 million vehicles, from 1.49 million. The company will strive to improve efficiency by exporting newly devised manufacturing processes from its Japan plants to other factories around the world.
Source: Autonews
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