Mazda is on a roll. Besides being a personal favorite of Mr. Thomas, they're actually attracting people that pay hard-earned money for cars unlike the free rides our guest editor receives. The big figures include an increase in operating profits of 49% and net income up 46%. The company points to, wait for it, global sales growth. And the company expects future growth in 2006 with the CX-7 and CX-9 in the U.S. and new MPV in Japan. Does that mean the new MPV isn't coming here?
Update: Thanks to one of our readers who pointed to this story in the Milwaukee Journal-Sentinel that says Mazda wills top selling minivans in the U.S. and instead will focus on the CX-9. Too bad, since the MPV was a pretty fair handling Minivan in its prime.
Full release after the jump.
MAZDA REPORTS RECORD PROFITS FOR FISCAL YEAR 2005
- Mazda forecasts sixth consecutive year of profit increases for 2006 -
FY2005 Consolidated Full Year Highlights:
Operating profit up 49 percent to record 123.4 billion yen
Net income increases 46 percent to a best ever 66.7 billion yen
Annual dividend up 2 yen to 5 yen per share
FY2006 Projection Highlights:
Operating profit forecast to increase by nine percent to 135 billion yen
Net income expected to increase by 12 percent to 75 billion yen
HIROSHIMA , Japan —Mazda Motor Corporation today reported its best ever financial results for fiscal year (FY) 2005. Consolidated operating profit in FY2005 exceeded last year's record results by 49 percent, reaching 123.4 billion yen. Consolidated wholesales increased by four percent and consolidated revenue increased by eight percent to 2,919.8 billion yen. Net income rose 46 percent to a best ever 66.7 billion yen.
The record operating profits in FY2005 were attributed to further global sales growth, assisted by new model introductions, Mazda's continued efforts to reduce costs and more favorable exchange rates. Mazda achieved two Mazda Momentum mid-term plan goals, namely over 100 billion yen in operating profit and a net-debt-to-equity ratio of less than one hundred percent, one year earlier than projected.
Mazda forecasts further growth in FY2006, notably in North America, Europe and China. Operating profit is forecast to increase by nine percent to 135 billion yen and net income is expected to increase by 12 percent to 75 billion yen.
"In FY2006, we intend to stay on course, further improving our operating results and continuing to build the Mazda brand globally with new, market-focused products," said Mazda Representative Director and Chief Financial Officer Gideon Wolthers.
Financial Results for FY2005
Consolidated revenue for FY2005 was 2,919.8 billion yen, a year-over-year increase of 224.2 billion yen. Operating profit was 123.4 billion yen, a rise of 40.5 billion yen and ordinary profit was 101.5 billion yen, up 28.4 billion yen from year-ago levels. Net income was 66.7 billion yen, an increase of 20.9 billion over last year.
Consolidated Cash Flow in FY2005 was 33.6 billion yen, consisting of Operating Cash Flow of 114.6 billion yen less investments of 81 billion yen. Mazda's net debt was reduced by 66.7 billion yen during FY2005 and now stands at 246.8 billion yen. The company's net debt-to-equity ratio is now 62 percent, down 55 points from the previous year.
Mazda plans to increase its annual dividend to 5 yen per share, up 2 yen from FY2004.
Financial Projections for FY2006
For fiscal 2006, Mazda forecasts sales revenue to reach 3,100 billion yen, an increase of 180.2 billion yen over FY2005. Operating profit is projected to climb 11.6 billion yen to 135 billion yen and net income is forecast to grow by 12 percent to 75 billion yen.
Global vehicle wholesales are projected to grow five percent to 1,210,000 units in FY 2006. Mazda's product-led growth is anticipated to continue with the recent launch of the all-new MPV in Japan, the Mazda CX-7 and CX-9 in North America and full availability of new diesel models in Europe.