Mazda, Subaru log double-digit gains in first half 2014

Article by Andrew Christian, on August 2, 2014

Mazda Motor Corp. and Fuji Heavy Industries Ltd. both said they are on pace to achieve record profits for the year ending March 2015. This comes as both carmaker posted strong demand for their vehicles in the United States, allowing them to log double-digit profit gains in the first quarter ended June 2014.

Mazda and Fuji Heavy both consider the US as their largest market, which posted an annualized sales rate of 17 million vehicles in June. Mazda posted a 54.4-percent jump in operating profit in April-June to JPY56.4 billion ($549.1 million), for a profit margin of 8 percent (6 percent in the same period last year).

Fuji Heavy, parent of Subaru, posted a 13-percent jump in operating profit to a record JPY78.7 billion in the first quarter ended June. A weaker yen helped Mazda and Fuji Heavy to hike their earnings in the period.

Despite struggling in their home turf Japan in the first quarter of the fiscal year, Mazda and Fuji were able to compensate with strong performance overseas. The increases in their profits demonstrated their focus on profitability over sales volume.

"This is a time when our patience is being tested," Mazda Executive Officer Tetsuya Fujimoto said. He, however, said that the carmaker’s sales in July in Japan may have dropped 20 percent as it gears up to roll out a remodeled Demio/Mazda2 subcompact in the fall.

He seemed unmoved with the prospect, saying that a sales drop in Japan would be compensated by strong sales overseas.

According to Fujimoto, Mazda is trying to boost profit per vehicle while it rolls out fuel-efficient vehicles in its "Skyactiv" series. These models share common structures and are assembled using a new manufacturing system that reduces costs.

Fuji Heavy, while the smallest of Japan's seven global carmakers, has the highest operating profit margin at around 13 percent. Both Mazda and Fuji Heavy reiterated their annual profit forecasts.

Topics: mazda, subaru, sales

If you liked the article, share on:

Comments

Login or Create new account to add a comment!

Recommended

Bentley Motors has just released the specs of the new Bentayga Diesel. Obviously, we couldn’t wait to share it here since it’s the first ever diesel model to come out...
by - September 26, 2016
A big chunk of Volvo Cars’ legacy in developing the most durable and capable car is evident in its latest Cross Country collection. Suffice it to say, our planet has...
by - September 21, 2016
Just very recently, we were all delighted to finally see a Bugatti Chiron out in the streets casually hanging around Cannes in France. The said car was purchased by a...
by - September 9, 2016
Earlier this year, Aston Martin wowed the world with a stunning concept car – the Vanquish Zagato. The concept made its first appearance in May during the Concorso d’Eleganza Villa...
by - September 7, 2016
Lamborghini has always been known to be the home to exotic supercars. The Italian automaker’s production facilities have hosted uniquely designed and powerful show-stopping supercars. It all started with the...
by - September 5, 2016