| May 15, 2002 |
Mazda Announces Best-Ever Net Profit Turnaround in FY2001 Projects Further Growth in FY2002
| Mazda Motor Corporation today announced the best-ever year-on-year turnaround in Mazda's corporate history. The company finished FY2001 solidly in the black in all areas on a consolidated and unconsolidated basis. Projecting further growth in FY2002, the company expects consolidated net profit to grow by 127% from the previous year to 20 billion yen (US$150 million, 172 million euro). Financial results for FY2001 (consolidated and unconsolidated basis) Consolidated revenue was 2,094.9 billion yen (US$15.7 billion, 18.0 billion euro), an increase of 79.1 billion yen (US$594 million, 681 million euro) from a year ago and an increase of 4.9 billion yen (US$37 million, 42 million euro) from the November projection. Operating profit was 28.5 billion yen (US$214 million, 245 million euro), an increase of 43.4 billion yen (US$326 million, 373 million euro) from a year ago and up 11.5 billion yen (US$86 million, 99 million euro) from the November projection. Ordinary profit was 19.2 billion yen (US$144 million, 165 million euro), an increase of 48.9 billion yen (US$367 million, 421 million euro) from a year ago and up 17.2 billion yen (US$129 million, 148 million euro) from the November projection. Net income was 8.8 billion yen (US$66 million, 76 million euro), an increase of 164.0 billion yen (US$1,231 million, 1,411 million euro) from a year ago and up 7.5 billion yen (US$56 million, 65 million euro) from the November projection. Consolidated cash flow was positive 30.6 billion yen (US$230 million, 263 million euro). This is 25.6 billion yen (US$192 million, 220 million euro) better than the November projection despite peak capital spending to support new product programs, as well as payouts of 45.2 billion yen (US$339 million, 389 million euro) for employees who elected to participate in an Early Retirement Special Program at the end of FY2000. On an unconsolidated basis, ordinary profit increased year-on-year by 60.6 billion yen (US$455 million, 521 million euro) to 28.3 billion yen (US$212 million, 244 million euro). This is an increase of 18.3 billion yen (US$137 million, 157 million euro) from the November projection. Net profit increased by 140.8 billion yen (US$1,057 million, 1,211 million euro) year-on-year to 13.2 billion yen (US$99 million, 114 million euro). This is an increase of 2.2 billion yen (US$17 million, 19 million euro) from the November projection. Mazda President Mark Fields said: "Mazda is back in the black. We are meeting all our performance targets, and there is more to come as we introduce exciting new products in FY2002 - a new lineup which will deliver significant growth. Compared to last year, we improved our net profit by 164.0 billion yen (US$1,231 million, 1,411 million euro) - a record turnaround in our 82 year history." Financial projection for FY2002 (consolidated basis) Mazda is set to roll out a steady stream of new products in FY2002, the first year of growth under the Millennium Plan, the company's multi-year business plan. In Japan, Mazda projects a 2.0% decrease in industry sales to 5.7 million units. Overseas, U.S. industry sales are projected to decline by 2.3%; and Europe by 5.1%. Mazda forecasts the yen at average exchange rates 125 yen to the U.S. dollar and 115 yen to the euro. Under these circumstances, consolidated revenue is projected to increase by 7% from the previous year to 2,250 billion yen (US$16.9 billion, 19.4 billion euro) in FY2002. Operating profit is projected to increase by 79% to 51 billion yen (US$383 million, 439 million euro) with ordinary profit increasing by 93% to 37 billion yen (US$278 million, 318 million euro). Net profit is projected to grow by 127% to 20 billion yen (US$150 million, 172 million euro), with cash flow positive at 40 billion yen (US$300 million, 344 million euro). Fields added: "FY2002 is a pivotal year for Mazda, the launch pad for our blitz on the global marketplace. We are very encouraged by our progress so far, and we are confident that the Millennium Plan has focused our entire organization on the company's key objectives. "The entire Mazda group is working on the successful launch of our exciting next-generation products, which will drive significant business growth. We are confident that we will continue to deliver on our commitments led by Lewis Booth, who will succeed me as President of Mazda later this year." Note:
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