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Mazda’s Net Income Plunges 44%
Mazda Motor Corp.’s net income dropped 44% to 20.6 billion yen ($184 million) in April-June.
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Mazda Motor Corp.’s net income dropped 44% to 20.6 billion yen ($184 million) in April-June.
The company’s revenue rose 9% to 873 billion yen ($7.9 billion), and retail sales rose 7% to 703,000 vehicles. But results were hurt by unfavorable exchange rates, a poorer sales mix, costlier sales incentives and an upswing in spending on the company’s retail network.
Mazda says its top focus is to strengthen sales in the U.S., its largest market. The company also will gain 150,000 units of local capacity in 2021 when it and Toyota Motor Co. open a co-owned assembly plant in Alabama. Mazda will produce a new crossover vehicle in the $1.6 billion facility.
The carmaker reiterates its guidance, which predicts global sales rising 2% to 1.7 million units in the fiscal year ending March 31. But Mazda also affirms that it expects deteriorating foreign exchange rates will cut operating profit and net income by 28% and 29%, respectively, in the current fiscal year ending March 31.
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