Operating profit up 49% to a record 123.4bn yen and a 46% net income rise to a best-ever 66.7bn were just two highlights of Mazda Motor Corporation’s “best ever financial results” for financial year 2005 announced on Friday.

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Stockholders will receive an annual dividend up 2 yen to 5 yen a share.


Mazda is projecting that the upward trend will continue. For fiscal 2006 it is forecasting operating profit up 9% to 135bn yen and a net income increase of 12% to 75bn yen.


Consolidated wholesale sales increased 4% and consolidated revenue rose 8% to 2,919.8bn yen.


Mazda said the record results were due to further sales growth worldwide, boosted by new model introductions, plus ongoing cost-reduction efforts and more favourable exchange rates.

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The automaker said it achieved two ‘Mazda Momentum’ mid-term plan goals: over 100bn yen in operating profit and a net-debt-to-equity ratio of less than 100%, a year earlier than projected.


Further growth in fiscal 2006 will be led by North America, Europe and China.


“In FY2006, we intend to stay on course, further improving our operating results and continuing to build the [brand] globally with new, market-focused products,” said chief financial officer Gideon Wolthers.


Global vehicle wholesale sales are projected to grow 5% to 1,210,000 units in fiscal 2006. It expects some of the growth to come from the launch of a redesigned MPV (minivan) model in Japan, the CX-7 and CX-9 crossovers in North America and full availability of new diesel models in Europe.


Noted president and CEO, Hisakazu Imaki: “Many challenges lie ahead of us as we confront an extremely competitive global automotive industry.”