Mazda Motor on Monday that its annual operating profit jumped 77.4% thanks to hefty cost cuts and healthy European sales, and forecast its highest income in a decade for this business year, Reuters reported.
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Reporting audited results after announcing preliminary figures last month, Mazda said group operating profit for the year ended March 31 came to 50.66 billion yen ($US432.7 million) while sales grew 12.9% to 2.36 trillion yen, Reuters said.
For 2003/04, Mazda, one-third owned by Ford, forecast operating profit to grow by another 28.3% to a record 65 billion yen, powered by new models like the Mazda 6/Atenza sedan, the news agency added.
Mazda, in the midst of a five-year turnaround plan, is counting on models like the award-winning 6 and 2/Demio subcompact to boost global sales and put the company on a firm recovery track and is also expected to benefit this year from stronger sales in Europe and a weaker yen against the euro, Reuters said.
But the news agency noted that the company is faring worse in the United States, where sales of the 6 have been sluggish. Some analysts noted that the new launches have caused a sharp drop in sales of older models, leading to a surge in inventories and posing a risk to its bottom line.
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