Mazda's record profits in 2013 due to success of SKYACTIV models
Overseas activities focused around Mexico, Thailand and Malaysia
2014/06/11
- Summary
- Structural Reform Plan Target: global sales of 1.52 million units for FY 2016
- Trends in major markets
- Model plan: New Demio previewed in HAZUMI concept car
- Production capacities for SKYACTIV powertrains to be expanded in Japan and Mexico
- Operating profit for FY 2015 expected to set a new record high at JPY 210 billion
- Production Forecast by LMC Automotive: Mazda's production to rise to 1.78 million units in 2017
Summary
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Successful SKYACTIV models contribute sales growth
Mazda's global unit sales for the fiscal year ended March 2014 (FY 2014) climbed 7.8% year-over-year (y/y) to 1.33 million units. The sales increase was led by the vehicles with its new-generation technology, "SKYACTIV," which strives for improvement of driving and environmental performance as well as reduction of production cost. Among the SKYACTIV models, sales of the CX-5 and Mazda 6 (sold as the Atenza in Japan) remained strong, while the new Mazda3 (sold as the Axela in Japan) was successfully released in the world. As a result, SKYACTIV models accounted for 51% of the total unit sales.
Operating profit increases 3.4 times in FY 2014
Mazda's consolidated sales for FY 2014 rose by 22.1% y/y to JPY 2,692.2 billion, and consolidated operating profit hit a record high of JPY 182.1 billion, an increase of 3.4 times y/y. Mazda posted net losses for four consecutive terms from FY 2009 to FY 2012. With the aim of recovering profitability, the automaker has implemented the Structural Reform Plan to promote "business innovation by SKYACTIV TECHNOLOGY" and "cost reduction through adoption of the common architecture across different models." Mazda's effort to promote the structural reform plan has been yielding results.
Another record high profit expected for FY 2015
Among the factors for improved operating profit for FY 2014, exchange fluctuations boosted profit by JPY 112.7 billion, while sales increase of SKYACTIV models delivered an increase of JPY 55 billion. On the other hand, according to Mazda's financial outlook for FY 2015, exchange fluctuations will reduce operating profit by JPY 3 billion, although expanded sales of SKYACTIV models will add JPY 60 billion. As a result, operating profit for FY 2015 is expected to set another record high at JPY 210 billion.
Enhancement of production bases in Mexico, Thailand and Malaysia
Mazda has a mid- and long-term plan to enhance overseas production capacities to build production bases which minimize the effect of exchange fluctuations. Mazda also aims to globally distribute SKYACTIV models at competitive prices. The company is scheduled to start full-scale operations of the new Mexico plant which will build vehicles for the Americas and Europe. In Thailand, a new transmission plant will be constructed, while production capacity is expected to be raised in Malaysia.
Related Reports:
Mazda: SKYACTIV contributes to CX-5 and Mazda6 profitability (Apr. 2013)
Mazda: "Monotsukuri Innovation": Cost improvement through innovative manufacturing of vehicles (Apr. 2012)
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