Mazda Motor Corp. more than doubled its net income in its third fiscal quarter ended December to JPY52.4 billion ($498.0 million), thanks to stronger sales and a weaker yen. The carmaker logged a 34-percent surge in global revenue to JPY685.9 billion ($6.52 billion) in the quarter and a 15-percent jump in sales to 322,000 vehicles.
The export-dependent Mazda took advantage of the weakening yen, which hiked yen value of overseas earnings when sent back to Japan and renders Japanese exports more competitive internationally. Mazda is also gaining momentum on structural reforms implemented by its previous chief executive, Takashi Yamanouchi, including the rollout of a new drivetrain and manufacturing strategy.
Vehicles fitted with Mazda's Skyactiv engines and lightweight architecture return higher margins and account for 48 percent of the carmaker’s global product mix.
In the first nine months of the fiscal year, Mazda logged JPY97.0 billion ($921.9 million) in foreign exchange gain, one third of which were accounted for by effect of yen’s weakening against the dollar. The yen has depreciated by 24 percent against the dollar in the past year and by 26 percent against the euro.
With the current situation, Mazda is aiming to set record net and operating income in the current fiscal year ending March 31, 2014. The carmaker expects to post JPY110 billion ($1.05 billion) in net income in the current fiscal year ending March 31, 2014, from JPY34.3 billion ($326.0 million) a year ago.