Mazda First Half Operating Profit Rises,
 

HIROSHIMA, Japan, Nov. 2, 2005 -- Mazda Motor Corporation has reported an increase in profit for the first half of FY2005. The results keep the company on track to achieve its best ever full-year operating profit and net income.

For the first half of the 2005 fiscal year, Mazda recorded 557,000 global wholesales, up 5 percent compared to the same period last year. Revenue increased 2 percent year-on-year to 1,351.9 billion yen (11.9 billion USD, 9.9 billion EUR) and Operating Profit increased 12 percent to 48.8 billion yen (431 million USD, 358 million EUR).

On a regional basis, Japan's sales for the first six months grew 4 percent to 141,000 units compared to the same period last year, reflecting the success of the recently launched Premacy minivan. In the United States, sales declined by one percent and sales in Europe were down 3 percent year-on-year, in part reflecting production constraints and runout of previous models ahead of new model introductions. Sales are expected to pick up in the second half with new model introductions and improved supply. Ordinary Profit rose 17 percent to 43.4 billion yen (383 million USD, 318 million EUR), Profit Before Tax increased 88 percent to 63.2 billion yen, and Net Income was up by 66 percent to 31.1 billion yen (274 million USD, 228 million EUR). Included in Profit Before Tax was an extraordinary gain of 19.8 billion yen, which is largely attributable to the transfer of the substitutional portion of employee pension fund obligations and assets to the government as well as fixed asset impairment losses.

Full-year projections for FY 2005

Mazda is forecasting a rise of 6 percent in global wholesales to 1.17 million units in FY 2005. Consolidated revenue is projected to increase 5 percent year-on-year to 2,820 billion yen, with full-year Operating Profit expected to climb 15 percent to 95 billion yen, and ordinary profit up 16 percent to 85 billion yen. Additionally, net income is forecast to grow by 20 percent for the full-year to 55 billion yen.

"I am pleased to be able to report another set of favorable financial results,” said Gideon Wolthers, Mazda's representative director and chief financial officer. "While we face a challenging second half, our commitment to product-led growth continues with solid contributions expected from our new Mazda5, MX-5 and Mazdaspeed6 models."

Summary:

Sales revenue: 2,820 billion yen, up 124.4 billion (5 percent) on FY2004
Operating profit: 95.0 billion yen, up 12.1 billion yen (15 percent) on FY2004
Ordinary profit: 85.0 billion yen, up 11.9 billion yen (16 percent) on FY2004
Net income: 55.0 billion yen, up 9.2 billion yen (20 percent) on FY2004.

-Dollar equivalents compiled at 113.21 yen to the dollar (Exchange rate prevailing on Sept. 30, 2005).

-Euro equivalents compiled at 136.15 yen to the Euro (Exchange rate prevailing on Sept. 30, 2005).

you might even say mazda is ford's saving grace. mazda was good new for ford when their yearly earning reports came out last year, being that the US automakers including ford were posting a loss, mazda was the bright spot in ford's portfolio. plus their Z family of engines is practically replacing many of the older, smaller duratecs & zetecs, mazda's gene pool is definitely expanding.
-meGrimlock