Earlier this week, Mazda announced that it is once again profitable, having its first annual net profit in five years. Despite this profitability, the North American operations have posted losses. Mazda CEO Takashi Yamanouchi believes the losses will end this fiscal year.
After four years of losses, Mazda rebounded and reported a global net profit of $364.3 million with the close of the fiscal year ending March 31. On an operating basis, Mazda had a $572.8 million profit, where just last year the automaker reported a loss of $411.2 million, even as revenue rose 8 percent to $23.42 billion. This year’s results were marked down thanks to U.S. operation losses.
The North American loss widened from last year’s $427.8 million to $519.1 million. All other regions remained in the black or had an expansion of profits. Yamanouchi believes that restructuring and the decline in the yen against the dollar will have the region turning a profit. The company predicts that overall sales in North America will rise 11 percent in the fiscal year ending March 31, 2014, with help from the redesigned 2014 Mazda6 sedan and upcoming all-new Mazda3.
Source: Automotive News (Subscription required)