Mazda posted a $285.3 million loss in its fiscal first quarter

Article by Christian A., on July 28, 2011

Mazda Motor Corp., in its fiscal first quarter, posted an operating loss of 23.1 billion yen ($285.3 million) in the three months ended June 30, compared to the operating profit of 6.4 billion yen ($79.0 million) in the same period last year.

Revenue dropped to 408.1 billion yen ($5.04 billion) or 30 percent. Moreover, international sales for the period slipped to 281,000 units or 11.3 percent, as the company’s factories struggled to return to normal operations after the March 11 earthquake in Japan that disrupted the country's supply chain.

Furthermore, the company’s domestic production declined 20 percent in the quarter. Kiyoshi Ozaki, the company’s chief financial officer, revealed that lost production alone cost the company 3.7 billion yen ($45.7 million) in special losses during the quarter.

He added, however, that volume has now returned to pre-quake levels. The company took another 20.0 billion yen ($247.0 million) hit in lost sales because of the earthquake.

The company’s loss comes as vehicle manufacturers in Japan enter earnings season bracing for red ink or big declines. The second vehicle manufacturer to give results, Mazda followed Nissan, which reported a smaller-than-expected 10 percent decline in operating profit to remain in the black.

The continued appreciation of the yen against the euro and the dollar is also hurting the earning of Japanese carmakers, undermining the value of overseas earnings repatriated to Japan. It also pressures Japanese vehicle manufacturers to increase overseas prices, damaging competitiveness.

Topics: mazda

If you liked the article, share on:

Comments

Recommended

Alpine is said to be developing an SUV which is believed to be the Porsche Macan’s closest rival. According to AutoExpress, the newly revived performance brand has been looking to...
by - July 20, 2017
Two years ago, there was a patent filed by Honda Motors under the name “baby NSX”. It then had a angular sports car design that is clearly mid-engine, and had...
by - July 20, 2017
The long awaited 2018 Buick Regal GS has finally been revealed by the company, following several leaked photos and information in the past few months. The thing is, if you’ve...
by - July 20, 2017
Earlier this month, we learned that France has made moves to ban diesel and gasoline fueled cars by stopping them from entering the city. More than that, they plan to...
by - July 19, 2017
The new 2018 Rolls-Royce Phantom VIII is on the way, but still, all we had been seeing are camouflaged prototypes of the eight generation of this iconic nameplate. Fortunately though,...
by - July 19, 2017
Facebook

Youtube Channel

Tip Us
Do you have a tip for us?
Did you film an important event?
Contact us
Newsletter
Subscribe to our newsletter!
Subscribe
Galleries