According to the statement made by Mazda Motor Corporation last November 2, 2007, the company was able to remain on track for yet another year. This is good news for Mazda. Word has it that the weakened yen has managed to lift the corporation’s net profit by around 6.8 percent. This is in lieu of six months to the month of September. Nowadays, the Mazda Motor Corporation is considered to be the fifth among the largest Japanese automakers.

Mazda is an affiliate of the Ford Motor and it also came as a good news for Ford that Mazda was able to post a net profit of 29.05 billion yen, which when converted amounts to 253 million dollars. This earning is despite the fact that Mazda suffered a 62.5 percent plunge on sales as far as the fiscal first quarter is concerned.

According to the Hiroshima-based group, as for Mazda’s first-half operating profit, it was able to gain around 4.8 percent last year to 73.08 billion yen. This is an “all-time high” as revenue continue to rise up to 8.9 percent to 1.66 trillion yen. Cheaper yen is profitable for those who are doing exports. Since Mazda is among those who do, they were able to profit from their export earnings. Apart from this, they were also able to employ their cost-cutting efforts that really came well to counter the heightened costs of raw materials.

According to reports, Mazda has a 0.9 percent increase in its global sales. In the 0.9 percent, 659,000 vehicles were sold in the first half. This was considerably dragged down when there was an overall decline in Japan’s auto market by 5.8 percent. Afterwards, the sales were able to pick up again as it rose to 7.1 percent increase in the United States. At this time, Mazda vehicle sales in Europe remained flat and unfortunately, it dropped by 32.6 percent in China. This is primarily caused by the termination in the production of two Mazda models.

If one can recall, Mazda has forecasted that it will yet have another year of record earnings. According to their forecast, they will have a 15.3 percent increase in terms of net profit. This roughly translates to about 85 billion yen. Recently, Mazda has been experiencing an operating profit increase of 0.9 percent to 160 billion yen. On their record revenue, 3.32 trillion yen is up by 2.2 percent.

This entry was posted on Friday, November 9th, 2007 at 12:07 am and is filed under Mazda news. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.