Japan: Mazda sees 5.4 percent quarterly profit drop even as US and China sales are on the rise image

Mazda Motor Corp. has recently announced its quarterly financial results were 5.4 percent weaker this year than during the same period of 2014 even though the company has grown deliveries in China and the US.

The company has not been able to overcome the issues derived from foreign exchange losses and the expenses booked for the construction of new manufacturing facilities in Mexico and Thailand. Mazda announced in a statement released Thursday its April-June operating profit dropped to 53.32 billion yen ($430 million) from 56.38 billion yen during the same timeframe a year ago. The brand’s worldwide vehicle deliveries during the first quarter of the current fiscal exercise have actually jumped 16 percent to 370,000 units, thanks to surging demand for the company’s newly renewed models such as the Mazda2 and new introductions, such as the CX-3 small crossover. Sales in the company’s largest worldwide market, the United States, surged 5.6 percent, on pace with the overall rise of the auto market.

New model introductions also assisted the brand’s deliveries in China, where they jumped 31 percent to a new record of 57,000 autos, thanks also to government subsidies supporting the environmentally-friendly Mazda3 model. Still, the carmaker remained wary of the Chinese market, where global automakers are concerned the recent stock market rout and ongoing economic woes would curb consumer appetite for new vehicles. “To be honest, it’s difficult to read [the Chinese auto market],” commented Masahiro Moro, managing executive officer and head of global marketing. “Up to now it’s been growth and growth, but that’s no longer quite the case,” he said. Full-year operating profit is predicted to reach 210 billion yen, a little better than the 203 billion figure seen last year.

Via Automotive News Europe