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NEWS
Mazda's SKYACTIV products drive record profit
Natural disasters consigned to the past as Mazda achieves highest operating profit in its historyMazda's operating profit has scaled new heights in just the two years since the company arranged a subordinate loan and share float to boost liquidity in the lead-up to a growth phase.
As of March 31 this year, Mazda has accrued earnings worth ¥182.1 billion in operating profit – an amount equivalent to AUD $1.9 billion. Not only is this sum a 238 per cent gain on the company's operating profit for the previous (Japanese) fiscal year, it's also 12 per cent better than Mazda's previous record operating profit of ¥162 billion – set in 2008, when currency exchange rates favoured Mazda more.
The company expects profits to continue growing too, pointing to the fourth quarter return on sales (7.6 per cent), versus 6.8 per cent for the full year and just 2.4 per cent for the fourth quarter of the previous fiscal year (2012/13). Net earnings increased by a factor of four to ¥135.7 billion (AUD $1.4 billion) and revenue of ¥2.69 trillion (AUD $28.3 billion) improved by 22 per cent, year on year.
While the company achieved its latest result on the back of cost-cutting measures and new manufacturing efficiencies, the profit was principally the result of better sales from new product.
Mazda sold 1.33 million vehicles around the world during the reporting period, marking an eight per cent lift in global sales. Europe was one of the stronger regions, with Mazda sales increasing 25 per cent to 163,000. Of that sum, the UK contributed 35,000 units – a 35 per cent jump – and German sales lifted 250 per cent to 47,000. This was in the context of flat sales across the European market as a whole.
In Asia, Mazda sales improved 13 per cent to 244,000 in its home market, and rose 12 per cent to 196,000 in China. North American sales were up by five per cent to 391,000 vehicles. Australia is one market where Mazda's sales haven't improved, according to VFACTS. Despite sales of 103,144 for the calendar year 2013, Mazda's tally had actually slipped back by 0.7 per cent according to the industry statistician. But at 27,785 sales for the year to date, Mazda remains second only to Toyota in 2014 – narrowly ahead of Holden on 27,419.
Sales have grown with the rolling introduction of SKYACTIV technology in the CX-5 and the latest generation Mazda3 (pictured) and Mazda6. The company has also accelerated production by bringing on-line a new plant in Mexico to service the North American markets.
For the next fiscal year, Mazda projects another record operating profit – ¥210 billion (AUD $2.2 billion).
It's a far cry from the years between 2008 and 2011, when Ford sold much of its stake in Mazda, merely to continue operating, and natural disasters in Japan and Thailand interrupted global production by Mazda.
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Written byCarsales Staff
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