Mazda Quarterly Profits Fall on Currency Losses, Sales Rise
April 24, 2015—Profits fell at Mazda Motor Corp. in the first quarter of 2015, 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 $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 $228.2 million in the quarter.
The reversals came despite a 12 percent increase in global revenue to $7.02 billion and a 4.2 percent increase in global sales to 394,000 vehicles.