Mazda Cuts Fiscal Year Group Net Profit Outlook

TOKYO April 25, 2003; Dow Jones reports that Mazda Motor Corp. cut its group net profit forecast for the year ended March 31, blaming the introduction of a new tax by municipal governments as well as appraisal losses on stockholdings.

The No. 5 Japanese carmaker, in which Ford Motor Co. holds a 33.3% stake, now expects to report a group net profit of Y24.10 billion, down from Y26.5 billion forecast earlier.

Mazda lifted its parent pretax outlook to Y24.5 billion from Y13 billion, citing stronger-than-expected sales, cost cutting and the yen's depreciation against the euro.

The company lifted its group sales estimate to Y2.365 trillion from Y2.340 trillion.

The company will report earnings results in May.

For the year ending March 2004, Mazda said it expects strong sales and profit growth on the back of several new models.

It forecasts a group net profit of Y30.00 billion and a group operating profit of Y65.00 billion on group sales of Y2.42 trillion.

Mazda aims to sell 1.05 million vehicles worldwide this fiscal year, up from 1.02 million units in the last fiscal year, the company said.

It expects the dollar to average Y115 this fiscal year compared with Y122 last fiscal year, and the euro to average Y125, up from Y121.

The latest outlook follows an upward revision in October of its sales and profit projections.