AutoBeta(AutoBeta.net)05/12 Report--

Mazda reported that operating profit, net profit and profit margin all declined to varying degrees in fiscal 2018. Mazda blamed falling global sales, increased marketing spending, foreign exchange losses and rising investment costs in US retail network reform.

In fiscal year 2018 (April 2018-March 2019), Mazda's global new car sales reached 1.561 million, down 4% from a year earlier, with sluggish sales in China and the United States, the company's largest regional market.

In terms of performance, Mazda achieved operating income of 3.56 trillion yen (220.9 billion yuan) in fiscal year 2018, up 3 percent from the same period last year; operating profit fell to 83.01 billion yen (5.15 billion yuan); and net profit fell as much as 43 percent to 63.48 billion yen (3.93 billion yuan). In addition, operating margins fell to 2.3 per cent from 4.2 per cent in fiscal 2017.

For its part, Mazda said the decline in sales has affected performance, losing profits due to the suspension of production at Mazda's headquarters in Japan due to flooding last year, and new car incentives have further undermined profitability. Mazda's full-year profits have been reduced as a result of the fall in the exchange rate. Mazda is Mazda's largest market, and Mazda is reforming its sales network in the United States to improve the quality of its sales network, requiring a lot of extra money.

For future performance, Mazda has given a corresponding plan. Mazda forecasts sales growth of 4 per cent year-on-year, operating profit of 33 per cent and net profit of 26 per cent in fiscal 2019. To achieve this goal, Mazda will improve profitability through the new car effect and controlling sales costs. Mazda aims to increase global sales to 1.8 million vehicles and its operating profit margin to 5 per cent from fiscal year 2024.

In terms of models and technology, Mazda will develop in-line six-cylinder engines and promote electrification strategies. Mazda plans to enter the high-end market and develop new in-line six-cylinder Skyactiv-X and Skyactiv-D engines, which are expected to be the first to be used in the next generation rear-drive Mazda6 models. In terms of electrification, light mixing system, plug-in hybrid system and pure electricity system will be introduced to comply with the trend of marketization and emission reduction.

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