Mazda spends $62.8 million in past quarter to fix earthquake-related damages

Article by Christian A., on April 27, 2011

In the past quarter, Mazda Motor Corp. posted a 5.2 billion yen ($62.8 million) charge to fix the damages it incurred due to the March 11 earthquake in Japan. Mazda said that it may attain prequake production levels towards the end of the year.

CEO Takashi Yamanouchi said that in May and June, the utilization rate of Mazda's plants in Japan will range from 70 percent to 80 percent. He said that this number will go up in October.

At Mazda’s earnings announcement, Yamanouchi said that he hopes that starting in the second half when it’s fall season, it will have full production.

Toyota Motor Corp. and Honda Motor Co. have also said that normal production schedules will resume within the year. Mazda is based in the western city of Hiroshima, and so actually, it wasn’t affected much by the earthquake and tsunami that came after that. Mazda’s operations at its two plants in Japan are limited but are operating steadily.

At Mazda’s plants overseas, overtime work has been disallowed. Yamanouchi said that Mazda doesn’t intend to close these plants due to parts shortages.

Mazda said that towards the end of March, it lost 46,000 units of domestic production due to the quake.

Mazda’s earthquake-related charge has aided in bringing down the operating profit 8 percent to 10.6 billion yen ($127.9 million) in the fiscal fourth quarter that ended March 31 from 20.5 billion yen ($247.4 million) the previous year.

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