MZDAF.pk: Mazda Reports Fiscal Year 2007 Financial Results; Record Profits with Revenues and All Profit Levels Increasing for the Seventh Consecutive Year
Friday, April 25 2008 - 2:24
Hiroshima, Apr 25, 2008 - (JCN Newswire) - Mazda Motor Corporation today reported its financial results for fiscal year (FY) 2007 and announced its projections for FY2008.
FY2007 Consolidated Full Year Highlights:
- Global retail volume increases by nearly 5 percent to 1,363,000 units
- Consolidated sales revenue increases by 7 percent to a record 3,475.8 billion yen
- Consolidated operating profit up 2 percent reaching a record 162.1 billion yen
- Consolidated net income increases 25 percent to a best-ever 91.8 billion yen
FY2008 Projections Highlights:
- Global retail volume to reach 1.48 million units, a 9 percent increase
- Consolidated sales revenue expected to decrease by 14 percent to 3,000 billion yen
- Consolidated operating profit to fall by 29 percent to 115.0 billion yen
- Consolidated net income expected to decline by 24 percent to 70.0 billion yen
- Dividends to remain at 6 yen per share
In the first year of the Mazda Advancement Plan, Mazda's FY2007 operating profit reached 162.1 billion yen, exceeding FY2006's record results by 2 percent. Consolidated revenue increased by 7 percent year-on-year to 3,475.8 billion yen, surpassing the 3 trillion yen level for the second consecutive year. Net income also achieved a best-ever record of 91.8 billion yen, up 25 percent, and global retail volume rose by nearly 5 percent year-on-year to 1,363,000 units. Excluding the impact from discontinued Mazda brand vehicle production in Hainan (China), global retail volumes increased by 11 percent.
For FY2008, as product-driven growth for the company continues, Mazda is projecting a global retail sales increase of 9 percent to 1.48 million units. However, considering recent fluctuations in exchange rates and escalating prices of raw materials, operating profit is expected to decrease 29 percent to 115.0 billion yen, and net income to reach 70.0 billion yen, down 24 percent.
Mazda President and CEO Hisakazu Imaki said, "This was the first year of the Mazda Advancement Plan and we are very pleased that we achieved record profits across the board in FY2007. Our Zoom-Zoom products were very well received by our customers, and global sales volumes increased again this year. As we launch further new products in our global markets, we expect sales to continue growing during FY2008, increasing by 9 percent to 1.48 million units."
"In consideration of the challenging business environment, we have set tighter forecasts for our profit levels in the next period. However, the plan for building the company is on track. We will continue to raise business efficiency, accelerate cost innovation and enhance brand value through new product launches and increased customer satisfaction. In doing this successfully, we will achieve the aims set out in the Mazda Advancement Plan."
Financial Results for FY2007
Global retail volume was 1,363,000 units in FY2007, an increase of 5 percent over FY2006. This reflects the added sales from the launch of the all-new Mazda2 (known as the Demio in Japan and the 2008 World Car of the Year) and all-new Mazda6 (Atenza) in global markets excluding North America, and increased sales of the Mazda CX-9, which won the 2008 North American Truck of the Year award. Consolidated revenues in FY2007 were 3,475.8 billion yen, a year-on-year increase of 228.3 billion yen, or 7 percent. Operating profit was up by 3.6 billion yen, a 2 percent increase over the same period last year, to reach 162.1 billion yen. This reflects new model launches, increased sales in other regions, and an improved model mix in Europe, which again achieved record sales results. Ordinary profit was 148.5 billion yen, a rise of 16 percent, or 20.7 billion yen over the figure from the last fiscal year. Net income increased to 91.8 billion yen, up 18.1 billion yen from year-ago levels, an increase of 25 percent.
Financial Projections for FY2008
Mazda projects a global retail volume of 1.48 million units in FY2008, a 9 percent increase over FY2007. With the planned introduction of the all-new Mazda6 North American model in FY2008, together with contributions from the Mazda6 and Mazda2, global sales are forecast to increase. Sales in China are projected to rise approximately 80 percent on the availability of the full lineup of key models in that market. Despite an increase in volume and an improved model mix, consolidated revenues are expected to decrease by 14 percent to 3,000 billion yen, a drop of 475.8 billion yen over FY2007 levels. This is primarily due to the impact of the stronger yen and the implementation of standardized accounting principles between overseas subsidiaries and the parent company. Mazda projects operating profit to be down by 29 percent, a year-on-year decrease of 47.1 billion yen, to reach 115.0 billion yen in FY2008. The outlook for ordinary profit is 110.0 billion yen, a decline of 38.5 billion yen, or 26 percent, from prior-year levels. Mazda is forecasting net income to be down by 21.8 billion yen (24 percent) to reach 70.0 billion yen.
Mazda Motor Corporation (TSE: 7261) started manufacturing tools in 1929 and soon branched out into production of trucks for commercial use. In the early 1960s, Mazda launched its first passenger car models and began developing rotary engines. Still headquartered in Hiroshima in western Japan, Mazda today ranks as one of Japan's leading automakers, and exports cars to the United States and Europe for over 30 years. For more information, please visit www.mazda.com .
Contact:Mazda Motor Corporation Corporate Communications and Liaison Division Tokyo: +81-3-3508-5056 Hiroshima: +81-82-282-5253 Japan Corporate News Network. All rights reserved
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