| November 12, 2001 |
| (For Your Information) |
Mazda Predicts Profit for Full Year
- Profit Also Delivered In First Half -
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Mazda Motor Corporation today forecast profit for Fiscal Year 2001 putting the company ahead of its previous breakeven target for the period. The company also confirmed its consolidated and non-consolidated profit for the First Half of FY2001 and projected breakeven for the second half. Mazda also announced its intention to declare a year-end dividend. Mazda President Mark Fields said: "We are building a track record of delivering on our commitments--and even exceeding them. We sense real momentum as we move closer to launching our new generation of products starting with the Atenza/Mazda 6 next year." [First Half of FY2001] Consolidated revenue for the First Half of FY2001 was 1,038.2 billion yen (US$8.7billion, 9.5 billion euro), an increase of 32.1 billion (US$270 million, 294 million euro) from the same period of the previous year, but a decrease of 31.8 billion yen (US$267 million, 292 million euro) from the original projection. Operating profit was 11.2 billion yen (US$ 94 million, 103 million euro), an increase of 15.9 billion yen (US$134 million, 146 million euro) from the same period of the previous year, and up 18.2 billion yen (US$ 153 million, 167 million euro) from the original projection. Ordinary profit was 4.8 billion yen (US$40 million, 44 million euro), an increase of 21.4 billion yen (US$180 million, 196 million euro) from the same period of the previous year, and up 18.8 billion yen (US$158 million, 172 million euro) from the original projection. Net income was 1.3 billion yen (US$11 million, 12 million euro), an increase of 10.8 billion yen (US$91 million, 99 million euro) from the same period to the previous year, and up 10.8 billion yen (US$91 million, 99 million euro) from the original projection. Mazda was profitable at every basis for the period. Consolidated cash flow was negative 41.6 billion yen (US$350 million, 382 million euro). However, this is an improvement of 43.4 billion yen (US$365 million, 398 million euro) from the original forecast. This negative cash flow is more than explained by Early Retirement Special Program payouts for employees who elected to participate in this program at the end of the last fiscal year. Net debt was 525.2 billion yen (US$4.4 billion, 4.8 billion euro), which is an increase of 40.6 billion yen (US$341 million, 372 million euro) from the end of the previous fiscal year. However, this is 40.8 billion yen (US$343 million, 374 million euro) lower than the original projection. On an unconsolidated basis, ordinary profit increased compared with the same period of the previous year by 27.2 billion yen (US$229 million, 250 million euro) to 10.9 billion yen (US$92 million, 100 million euro). This is an increase of 15.9 billion yen (US$134 million, 146 million euro) from the original projection. Net profit increased by 19.4 billion yen (US$163 million, 178 million euro) compared with the same period of the previous year, to 6.7 billion yen (US$56 million, 61 million euro). This is an increase of 8.7 billion yen (US$73 million, 80 million euro) from the original projection. Mazda's turnaround performance in the First Half of FY2001 reflects broad-based improvements across most areas of Mazda's business, but particularly at the parent company. Favorable factors include greater cost reductions, favorable exchange rates net of price changes, and favorable volume and mix changes, which are more than explained by overseas markets. [Financial Projection] FY2001 will be a challenging year for Mazda, but we have delivered thus far on the commitments that we made in our Millennium Plan. The company will continue to maintain strong product activity during the year by introducing special versions of our existing product lineup supported by innovative sales and marketing initiatives, creating momentum for the introduction of next-generation products starting next year. The external environment has deteriorated with the impact of the September terrorist attacks in the U.S. casting a shadow over the global economy. It is also expected that competition in the auto industry will further intensify. The projection of financial results for FY2001 Full Year (from April 1 to March 31, 2002) is as follows:
In addition, Mazda announced its intention to declare a year-end dividend of 2 yen per share. Note: Financial Results
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