Mazda Motor Corp posts net loss of 21.52 billion yen, full year forecast unchanged

Mazda Motor Corp reported consolidated net loss of 21.52 billion yen (227 million dollars) for the first quarter of the 2009, amid the global financial crisis as sales declined and yen's appreciated against major currencies.

Mazda posted the loss for the third straight quarter against profit of 14.98 billion yen a year ago.

Mazda's sales plunged 44.5 per cent to 428.23 billion yen and consolidated operating loss was 27.98 billion yen, down 56.3 billion from the profit level of the last year, the company said on Thursday.

Global sales fell 26 per cent to 263,000 vehicles in the first quarter from a year ago as global markets stagnated.

Retail volume fell 25 per cent to 41,000 vehicles in Japan, 32 per cent to 74,000 vehicles in North America and 37 percent to 59,000 in Europe year-over-year.

Conversely, Mazda saw record sales of 27 per cent to 41,000 vehicles in China due to strong sales recorded by the launch of the all-new Mazda3 (Axela in Japan).

Like other Japanese automakers Mazda Motor Corp curtailed their losses and improve profitability in the last quarter went in for cost innovation initiatives and fixed cost reduction.

Mazda had cut production in due to the global slump, but resumed full production in June at its plants in Japan in view of demand picking up in Europe.(See: Mazda Motor Corp to resume full production at its plants)

Mazda has left its full year forecast unchanged, predicting that net sales is expected to fall 19.9 per cent to 2.03 trillion yen with a net loss of 50 billion yen and an operating loss of 50 billion yen. (The exchange rate assumptions for the full year of FY2009 are 95 to the dollar and 125 to the Euro.)

This month there were media reports that Toyota and Mazda were in discussions to supply hybrid vehicle technology to Mazda, which were denied by both companies.(See: Toyota, Mazda deny hybrid technology transfer talks)