Mazda Expected to Report Huge Operating Profit Jump in Second Quarter image

Mazda expects April-June operating profit to increase 20 times compared with the same period last year to almost 35 billion yen ($357 million).

Mazda relies on the increased demand for new models, as well as the weak yen to reach a 20-time higher operating profit. During the first half of the year the automaker manufactured in Japan more than three-quarters of its vehicles, exporting more than 80% of them. As the yen continues to get weaker the value of earnings continues to increase, making exports more profitable.

The automaker is expected to report its quarterly results on Wednesday, July 31st. Mazda said that the Mazda6 and CX-5 SUV models saw strong sales during this period, improving the company’s profitability. Earlier this month Mazda said it will not manufacture vehicles in Europe despite increasing sales in the market.

During the first six months of the year Mazda’s sales in Europe increased 5.4% to 74,419 vehicles, thanks to increased demand for the new Mazda6 and the CX-5 crossover. Market share also increased to 1.2% from 1%, according to ACEA.

“In our best year we sold 320,000 cars in our whole range,” said Mazda Europe CEO Jeff Guyton. “Maybe if I double our record someday, it would begin to make efficient sense [to build here], but at the moment it doesn’t make sense.”

Source: Reuters