Mazda Scored Largest Profit In The Company’s History Of 94 Years

Mazda Motor Corporation reported the highest operating profit in the company’s history of 94 years in the fiscal year which ended March 31, 2014. The Japanese car manufacturer has achieved a global operating profit of 1.36 billion euros, representing an increase of 238 percent compared with the previous fiscal year and an increase of 12 percent compared to the previous record in 2008. Moreover, the profit has steadily increased in the fiscal year: operating profit margin in the fourth quarter of the fiscal year reached 7.6 percent compared with 6.8 percent for the whole year, and 2.4 percent in the previous year.

Mazda reported gains in all other categories thanks to structural measures implemented at company level. Net income in the fiscal year 2013 – 2014 increased four times compared with the previous fiscal year, reaching 1.01 billion euros (plus 22 percent), with reported revenues of 20.1 billion euros. Global sales reached 1.33 million units, representing an increase of 8 percent.

In Europe, sales went up by 25 percent to 163,000 units, with a greater advance in the second half of the fiscal year. Among the markets that had the best performance was the United Kingdom, with an increase of 35 percent (35,000 units) and Germany with 20 percent (47,000 units). The revenue from the region increased by 28 percent, to 3.5 billion euros, while the overall European market profile remained stagnant.

On the other hand, Mazda sales in Japan rose 13 percent to 244,000 units. In China, vehicle sales rose 12 percent, to 196,000, while sales in North America (in the United States, Canada and Mexico) increased 5 percent to 391,000 units. Considering that Mazda has released 3 critically acclaimed models (the CX-5, Mazda 6 and most recently, Mazda 3) for the North American market in the last 2 years, these results are quite disappointing. In Australia, where it is the number 3 brand, with a market share of 9.2 percent, Mazda has remained strong behind competition, with sales of only 104,000 units.

Mazda’s success is generated mainly by a new generation of models. Equipped with unconventional technologies (SKYACTIV) and built under the successful design KODO (Soul of Motion), the Mazda CX-5 and Mazda 6 have seen great demand. The new Mazda 3, launched in the second half of the last year, also enjoyed a positive perception. The structural reforms implemented to improve costs and the creation of global production, are the cause of this impressive performance.

Thanks to that, Mazda has achieved profit objectives ahead of schedule. They managed also to set a new record in terms of operating profit, although the yen exchange rate was less favorable than back in 2008.

Continuing reforms and expanding global capacity, as well as launching new models in the coming period are means through which the car manufacturer expects further growth this year. Overall, revenue is estimated at 21.5 billion euro, a higher figure by almost 8 percent.

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