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Mazda’s Profits Sag
Mazda Motor Corp. reports its operating profit in April-June shrank 5% to 53.3 billion yen ($430 million), and net income plunged 25% to 36.8 billion yen ($296 million).
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Mazda Motor Corp. reports its operating profit in April-June shrank 5% to 53.3 billion yen ($430 million), and net income plunged 25% to 36.8 billion yen ($296 million).
The decline in the company's fiscal first-quarter results came in spite of a 16% increase in unit sales to 370,000 vehicles, which boosted net revenue 14% to 806 billion yen ($6.5 billion). Revenue jumped 39% in North America and 31% in China.
Operating income by region plunged 32% in Japan and 36% in Europe. But it tripled in North America and 18% in other areas, including China.
Mazda blames the income decline on 10.8 billion yen ($87 million) in unfavorable currency fluctuations and 5.6 billion yen ($45 million) in depreciation costs. The company left unchanged its guidance unchanged for the fiscal year ending March 31. The company expects its operating profit to grow 3% to about 210 billion yen ($1.7 billion).
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