Hoovey689

iTrader: (16)

Mazda's first profit in five years in sight due to weak yen

Automotive News reports Mazda is set to turn a profit for the first time in five years. The automaker is more dependent on exports from Japan than other automakers based in that country, and as a result, it has long suffered at the hands of a strong yen. But the currency has declined in value by some 16 percent over the past six months and Mazda's shares have tripled in value to their highest level since 2008. Contrast this situation to a year ago when Mazda printed 1.22 billion new shares to raise cash. The move was equivalent to 70 percent of the company's then-outstanding stock, and values tumbled to record lows as a result.

Now that the yen has fallen to a value of around 96 per dollar, Mazda operations in the US are more profitable and the company now projects it will earn around $279 million for the next fiscal year. Automotive News says a one yen change against the dollar can have a 9.1 percent impact on Mazda operating profit compared to 4.7 percent at Subaru parent Fuji Heavy Industries or 3.1 percent at Toyota. Those automakers better insulate themselves from currency fluctuations with overseas manufacturing facilities.

http://www.autoblog.com/2013/04/05/m...e-to-weak-yen/

Hoovey689

iTrader: (16)

Good job Mazda. The new 6 is gorgeous. The CX-5 is doing excellent for you. CX-9 is still one of the biggest and most agile utes on the market. The new 3 should also be a homerun. Let's see what the next RX and Miata do for you

Carmaker1

Proud of Mazda and their new efforts with the CX-5 and the '14 Mazda 6. My parents recently bought the latter('14 Mazda6 GT) as an extra car for visiting relatives to use and it does fairly nicely for it's class compared to competitors. However, the CX-9 is old and the facelift still looks to be of poorer quality than the other new models.

LexFather

Go Mazda!!!!!!

mmarshall

The fate of the next RX (if there actually is one) is somewhat unclear. But one thing we do know about the next Miata is that will likely be a joint Fiat/Mazda design. Let's hope that adding Italian-sourced parts to the Miata won't affect it's reliability, which, up to now, has been stellar.

mordecai

They deserve it! I'm looking forward to the new Mazda3

acuratechv

They have gotten better no doubt, anyone know if they are still in bed with Ford? That has been my biggest factor in all the modest hatred towards them...

mmarshall

From the latest figures I've seen, Ford's stake in Mazda is now down to only 3%, from a high of well over 30%.

jwong77

Is this sustainable? What happens when the yen goes strong again? I hate to be so negative, but it doesn't seem like the product is the reason for turn around as hinted by the article.

TangoRed

I'd say that is going to take a little while longer. They just now got a midsize sedan and cute ute that can truly compete with the best. They have no minivan and the CX-9, while really good, is old.

jadu

iTrader: (42)

well deserved

spwolf

nope... $279 million is terrible... I have no idea whats Mazda's problem anymore. They have good products that should sell much better.

Hoovey689

iTrader: (16)

The supposed reiteration of the RX-7 has been rumormill for a while now, but the name RX-9 has also popped up from time to time. Also another turbocharged rotary with 300hp "was" slated for whatever this mystery vehicle turns out to be. Guess we'll continue to play the waiting game

Hoovey689

iTrader: (16)

Mazda books first yearly profit in half-decade, NA still a drag

Automotive News reports Mazda has posted its first annual profit in five years. The company made $364.3 million in the last fiscal year, following a $1.14 billion loss the year prior. Operating profit also jumped up by $91.3 million to $572.8 million, thanks in part to a revenue increase of 8 percent to $23.42 billion.

But the news isn't all rays of sunshine. North America continues to be a problem for Mazda where the automaker posted yet another loss. The manufacturer lost $519.1 million last year, up from $427.8 million the year prior. While the launch of the CX-5 helped see US sales increase by 2 percent to 273,000 vehicles, the region as a whole bought up 372,000 units. Mazda had predicted closer to 380,000 units.

Even so, Mazda says it should have North America back in the black by next year, with the company forecasting a sales increase of 11 percent to 415,000 units in the region. That's thanks in part to a boost from the redesigned Mazda6 sedan.

http://www.autoblog.com/2013/04/30/m...-still-a-drag/

spwolf

they need to 4x their operating profits to stay viable company... i have no idea why people are not buying new CX5 and 6 in droves. Thankfully Yen is helping.