Mazda swings back into black

TOKYO, May 15 Reuters reported that Mazda Motor Corp clambered back to profit last business year and forecast much better results this year, when it will release several long-awaited vehicles.

In the biggest turnaround in the automaker's 82-year history, consolidated net profit was 8.83 billion yen ($68.72 million) for the year that ended on March 31, helped by cost cuts and a favourably weak yen.

That compares with a net loss of 155.24 billion yen the previous year. Earnings per share were 7.23 yen compared with a loss of 126.99 yen per share the previous year.

The results had been flagged last month by the company, which is one-third owned by U.S. auto giant Ford Motor Co and which spent much of the 1990s in the red.

After spending much of the 1990s in the red, Mazda's six years of Ford-led restructuring, which has included 2,210 job cuts or a one-fifth reduction in its non-manufacturing work force, as well as the closure of one plant, appears to be finally bearing fruit.

A new brand identity for Mazda vehicles, a clever "Zoom-Zoom" marketing campaign and a warm reception so far for new cars in the pipeline have fanned expectations of a product-led recovery.

With models including the "Mazda 6", the RX-8 sportscar and a remodelled Demio compact due to hit the market this business year, the automaker based in the southern Japan city of Hiroshima forecast net profit would climb 126.5 percent to 20 billion yen.

It expects its global vehicles sales to rise 5.5 percent to 1.0 million units, and operating profit is seen jumping 78.6 percent to 51 billion yen. Last business year operating profit rose 91 percent to 28.55 billion yen

It sees its vehicle sales in Japan rising 10.7 percent but its North American sales falling 6.9 percent. European sales are seen growing 25 percent.