HIROSHIMA, Japan—Mazda Motor Corporation today reported its financial results for fiscal year (FY) 2006 and provided its forecast for FY2007.
FY2006 Consolidated Full Year Highlights:
FY2007 Projections Highlights:
In the final year of the Mazda Momentum plan, Mazda’s FY2006 operating profit was a record 158.5 billion yen, exceeding FY2005 results by 28 percent. Consolidated revenue increased by 11 percent year-on-year to an all-time high of 3,247.5 billion yen, the first time it has surpassed the 3 trillion yen level. Net income once again achieved a best-ever record, up 11 percent to 73.7 billion yen, and global retail volume rose by 2 percent year-over-year to reach 1,302,000 units.
For FY2007, Mazda projects its operating profit to be 160.0 billion yen, up 1 percent. The full fiscal year 2007 outlook for net income is 85.0 billion yen, a 15 percent year-on-year increase. As product-driven growth for the company continues, Mazda is projecting a global retail sales increase of 4 percent in FY2007 to 1.35 million units. In addition, Mazda plans to resume interim dividends to shareholders for the first time in 15 years.
Mazda President and CEO Hisakazu Imaki said, “This was the final year of the Mazda Momentum plan and we are very pleased that our business performance in FY2006 once again resulted in all-time record results in all profit levels. FY2007 is the first year for our new Mazda Advancement Plan, and we will be aggressively increasing capital investment and R&D expenditures for product development of our core models and to strengthen our next-generation technologies. Going forward, we will execute this new mid-term plan with total dedication.”
Financial results for FY2006
Ordinary profit was 127.8 billion yen, a rise of 26 percent, or a 26.3 billion yen increase over the figure from the last fiscal year. At 73.7 billion yen, net income was up 7 billion yen from year-ago levels, a climb of 11 percent. However, net income would have increased by 26 percent over the prior year - excluding the one-time impact of an extraordinary gain from the transfer of a substitutional portion of employee pension fund liabilities to the government and impact of asset-impairment losses in FY2005. In addition, cash flow in FY2006 was 21.0 billion yen, consisting of an operating cash flow of 116.4 billion yen, less investments of 95.4 billion yen. Net debt, at 232.2 billion yen, was down 14.6 billion from the end of the prior fiscal year, resulting in a net debt-to-equity ratio of 49 percent in FY2006, a 13 point improvement over the prior year and under the 50 percent target figure.
Financial Projections for FY2007
FY2007 Projections Key Data
Please go to “Investor Relations” at the Mazda Official Website https://www.mazda.com/investors/ for additional financial information.