HIROSHIMA, Japan--Mazda Motor Corporation today announced its financial results for the first three months of fiscal 2005.

For the first quarter, Mazda worldwide wholesales were 278,000 units, up 8 percent compared to the same period last year. Revenue increased 4 percent year-on-year to 670.8 billion yen and operating profit increased 14 percent to 22.8 billion.

Mazda adopted a new accounting standard for asset impairment accounting, as planned, in the first quarter of fiscal 2005. This action entailed booking an extraordinary loss of 21.2 billion yen and a reduction in net income, to 0.4 billion yen, in the quarter.

On a geographic basis, Japan’s first quarter sales grew 8 percent to 65,000 units compared to the same period last year on brisk sales of the all-new Premacy minivan. In North America, sales in Canada increased 11 percent to 28,000 units while sales in the United States declined 7 percent year-on-year to 71,000 units due to a planned reduction in fleet sales. Mazda3 sales in Europe showed continued strength while overall sales were down 7 percent reflecting Premacy and MX-5 old model run-out ahead of new model launches.

In other key markets, sales in the first quarter were strong. In Australia, sales rose 9 percent year-on-year to 16,000 units while in China first quarter sales continued to surge, rising 81 percent over last year to 38,000 units.

Mazda continues to forecast, as announced on April 28, a rise in global wholesales to 1.178 million units in FY2005. Consolidated sales revenue is projected to increase 5 percent year-on-year to 2,840 billion yen and full-year operating profit is expected to climb 9 percent to 90 billion yen.

Net income, while down in the first quarter, is forecast to grow by 20 percent for the full year, to 55 billion yen, reflecting in part an extraordinary gain from the transfer of a portion of employee pension obligations and assets to the government.

Mazda Representative Director and Chief Financial Officer Gideon Wolthers said, “Mazda was again able to improve operating profits year on year in the first quarter and we are continuing the roll out of new products globally, including the new Mazda5 and MX-5.”

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