Mazda Reports 20 Billion Yen Operating Profit During First Quarter of Fiscal Year 2004

FY2004 First Quarter Consolidated Results:
- Vehicle wholesales: 258,150 units
- Sales revenue: 642.3 billion yen (USD $5.9 billion, 4.9 billion euro)
- Operating profit: 20 billion yen (USD $184.5 million, 152.6 million euro)
- Ordinary profit: 16.1 billion yen (USD $148.5 million, 122.8 million)
- Net income: 11.6 billion yen (USD $107 million, 88.5 million euro)

Mazda Motor Corporation today announced financial results for the first quarter of fiscal 2004. Supported by strong sales of its new-generation products, most notably Mazda Axela/Mazda3 and RX-8, consolidated wholesales during the period April through June 2004 were 258,150 units. Sales revenue was 642.3 billion yen.

Operating profit was 20 billion yen and ordinary profit was 16.1 billion yen. Net income for the first quarter was 11.6 billion yen.

This marked the first time that Mazda reported profits on a quarterly basis. Year-over-year profit comparisons were not provided, as Mazda had not reported profit levels during the first quarter of 2003.

In 2003, Mazda reported revenue and wholesale data on a quarterly basis. Prior to fiscal year 2003, Mazda provided no quarterly financial data.

Vehicle Sales Continue to Meet Expectations
In the first quarter of fiscal 2004, Mazda's global retail sales were up 11.9 percent from year-ago levels.

Retail sales in Japan for the first quarter were in line with market performance, down 2.6 percent year-over-year to 60,300 units. Mazda expects to grow sales and market share in Japan this year with the new Verisa, which was launched in June.

In the United States, retail sales totaled 76,189 units, up 11.7 percent. The year-over-year growth in sales reflected good Mazda3 and RX-8 sales, as well as the introduction of the five-door and Sport Wagon versions of Mazda6.

In the first quarter of fiscal year 2004, European sales continued to be a highlight within Mazda's global operations. Sales were 74,895 units, up 19.7 percent year-over-year and the highest level in a decade. Solid Mazda3 and RX-8 sales contributed in this quarter to Mazda's continuing momentum in Europe.

Additional strong results during the first quarter were posted in Canada, where sales in the first quarter were 25,064 units, up 23.1 percent year-over-year. And in China, where 24,413 Mazda products were sold in the first quarter, sales were up 32.4 percent over year-ago levels.

"We had a solid first quarter and are seeing good momentum and growth. We are satisfied with this result, but recognize that there are still significant challenges ahead of us this year," said Gideon Wolthers, representative director and chief financial officer.

Financial projections for FY2004, as announced on May 13, 2004, remain unchanged.
- Sales revenue: 2,660 billion yen (USD $25.3 billion, 21.3 billion euro)
- Operating profit: 70 billion yen (USD $ 666.7 million, 560 million euro)
- Ordinary profit: 65 billion yen (USD $ 619 million, 520 million euro)
- Net profit: 34 billion yen (USD $ 323.8 million, 272 million euro)

Notes:
Financial Results
- Dollar equivalents compiled at 108.43 yen to the dollar (Exchange rate prevailing on June 30, 2004).
- Euro equivalents compiled at 131.07 yen to the euro (Exchange rate prevailing on June 30, 2004).
Financial Projection
- Dollar equivalents compiled at 105 yen to the dollar.
- Euro equivalents compiled at 125 yen to the euro.