Mazda, 34 per cent owned by Ford and Japan’s fifth-largest car maker, yesterday announced the biggest turnaround in its 82-year history, forecasting net profits of 8.5 billion yen ($US65 million), 552 percent or nearly six times more than previously predicted.
Mazda lost 155 billion yen ($1.2 million) last year and its accounts were written in red ink for much of the 1990s.
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But the recovering company, currently launching its 626-replacing 6 model line-up worldwide, now expects pre-tax profits to soar to 18.5 billion yen, over nine times the result predicted only last November.
Mazda has cited the weak yen as a major factor in its improved performance though president Mark Fields, stressed that cost-cutting and restructuring were as important.
“Did the exchange rate help us? Yes. Did we help ourselves? Yes,” he told journalists in Japan.
The press were also told that all Mazda subsidiaries except Europe would be profitable this year. Losses there would be reduced but the company was being dragged down by the German market where it lacks diesel engines and faces intense competition from local rivals.
Unit sales in Mazda#;s latest forecast are little changed from the November forecast at 660,000 export and 288,000 domestic. The total of 948,000 is however down from 2001 sales of 964,000.
Mazda plans to introduce 16 new or revamped models in Japan by 2004-05. Many of the key models go on sale this year and the company is particularly confident its new Demio – which will also be built in a Ford plant in Europe and heavily marketed there – will significantly boost 2002/3 profits.
