JAPAN: Material costs and US dollar affect Mazda Q1

Fri 1 Aug 2008
Though Mazda boosted global retail volume 11% year-on-year to 358,000 units in its first fiscal quarter "as product-led growth continues", revenue was down 5% to JPY771.8bn and operating profit fell 12% to JPY28.3bn.

But ordinary profit rose 8% to JPY22.9bn and the automaker has left its full-year projections unchanged.

Mazda said operating profit fell mainly due to raw material price rises and a weaker US dollar.

Retail sales volumes rose in every major market except Japan. North America sales were up 3% to 109,000 units and Europe volume rose 20% to 93,000 units.

After recent difficulties, sales in China rose to 33,000 units in the first quarter, more than double the previous year. In other markets, volumes grew 9% to 69,000 units.

Sales at home in Japan, however, fell 4% to 54,000 units as sales of older models fell and were not offset by the launches of the updated Demio (2) and redesigned Atenza (6). The new Biante, launched this month, received 3,000 advance orders and is expected to build momentum, the automaker said.

Mazda's representative director, senior managing executive officer and CFO, David Friedman, said: "Mazda has achieved growing global sales in the first quarter of fiscal year 2008 despite difficult business conditions.

"While we aim to maintain steady product-led growth, due to the uncertainty in exchange rates, raw material prices, and changing market conditions, our projections for the full 2008 fiscal year remain unchanged."

Source: http://www.just-auto.com/article.aspx?id=95574