Mazda reduces net loss in fiscal first quarter to JPY6.5 billion

Article by Anita Panait, on August 2, 2012

Mazda Motor Corp. managed to taper its net loss in its fiscal first quarter ended June 30, 2012 to JPY6.5 billion ($83 million) from JPY25.5 billion in the same period in the last fiscal year.  The company’s net loss for the period is lower than the JPY7.5 billion yen average estimate of five analysts surveyed by Bloomberg.

The carmaker expects to return to profitability for the fiscal year ending March 31, 2013, and is already making moves like selling assets, shifting some production outside Japan and concentrating on fuel-efficient models. The company’s new CX-5 crossover sport utility vehicle was a huge success, posting sales figures that are more than double its full-year target of 12,000 units as of July 1, 2012, just barely five months after it was launched.

According to Koichi Sugimoto, a Tokyo-based analyst at BNP Paribas SA, the good sales for the CX-5 have benefited from the government subsidies in Japan, making up for their decline in China and Europe. Mazda posted 6.5-percent increase in global sales in the quarter to 299,733 units. The carmaker particularly posted a 44-percent increase in sales in Japan, thanks to government subsidies on fuel-efficient cars.

Mazda posted a 6.8-percent increase in sales in the U.S. to 61,774 units, while logging a 12-percent and 1.4-percent drop in sales in China and Europe respectively.

Mazda has said it will increase the production of CX-5 to 240,000 units a year from 200,000 to cater to increasing demand. Mazda will commence producing the Mazda6 sedan, fitted with its Skyactiv fuel-saving technology, this month. The automaker is planning to unveil eight new vehicles, increasing the ratio of vehicles using Skyactiv to 80 percent by March 2016.

If you liked the article, share on:

Topics: mazda, loss

Comments

Recommended

It has been nearly eight years since Toyota entered a new era of sports cars when it officially unveiled the production version of the Toyota 86 – also known as...
by - February 27, 2019
The new Audi TT RS – yes, the top version of the German carmaker’s facelifted TT model series – is now officially here. If you could remember, the range-topping TT...
by - February 18, 2019
Nearly half a year ago when McLaren Automotive unveiled the McLaren 600LT Coupe, the British carmaker is now introducing a version that lets its passengers enjoy the thrill of an...
by - January 25, 2019
German carmaker Volkswagen is now making the latest evolution of the new Volkswagen Golf GTI -- the new Golf GTI TCR. First unveiled as a concept at the annual GTI...
by - January 24, 2019
It has been three and a half years since BMW unveiled the sixth generation of the BMW 7 Series. Thus, it is really about to give the 7 Series a...
by - January 17, 2019