Mazda Motor Corporation fiscal year operating profit rose 18% to 82.9 billion yen, an all-time high. Consolidated wholesales grew by 3% year-over-year while revenue, at 2,695.6 billion yen, increased by 5%. Net income rose 35% to 45.8 billion yen, also an all-time high.
Profit growth for the year was attributed in the most part to continued strong growth in Europe and the company’s success in driving down costs. Mazda has now achieved the commodity-focused cost reduction target of 25% established at the inception of the initiative three years ago.
“Our FY2004 results are particularly satisfying as we faced a number of hardships in the past year, most notably the fire at the Ujina No.1 plant,” said Mazda representative director and chief financial officer Gideon Wolthers. “It is a testament to the entire Mazda team that we were able to stay the course and achieve record operating profits.”
Consolidated revenue for FY2004 was 2,695.6 billion yen, a year-over-year increase of 120.9 billion yen. Operating profit was 82.9 billion yen, an increase of 12.7 billion yen over the same period last year. Ordinary profit was 73.1 billion yen, up 15.1 billion yen from year-ago levels. Net income was 45.8 billion yen, up 11.9 billion over last year.
Consolidated cash flow was positive 35.9 billion yen. Mazda’s net debt was reduced by 44.6 billion yen during FY2004 and now stands at 313.5 billion yen. The company’s net debt-to-equity ratio is now 117%, down from 161% at the end of FY2003.
Mazda plans to increase its annual dividend to 3 yen per share, up 1 yen from FY2003.
For FY2005, Mazda is forecasting that all profit levels will be up year-on-year for a fifth consecutive year of profit improvements.
Revenue is forecast to be 2,840 billion yen, an increase of 144.4 billion yen, or 5%, from year-ago levels. Operating profit is forecast to reach 90 billion yen in FY2005. Net income is forecast to grow by 20% to 55 billion yen.
Mazda expects to grow wholesale volume by 7% in FY2005.