Mazda’s profit drops 62 percent in the 2nd-quarter

Japan’s number 4 auto maker reported a 62 percent drop in profit for the second quarter. However Mazda is not changing their forecast for what the company believes will be a record profit for 2007.

Mazda, which is probably the only thing Ford has going for itself right now said that the drop resulted mainly from foreign-exchange related accounting expenses and greater research investment.

Mazda reported a 2.48 billion yen ($20.9 million) profit for the three months that ended June 30. During the same period last year Mazda reported 6.61 billion yen in profits. Usually, a weak yen usually is an advantage for Japanese exporters, but this time it resulted in some losses due to forward foreign exchange contracts, Mazda said

Mazda reported a quarterly sales jump of 11 percent to 814.29 billion yen ($6.85 billion). The Japanese auto maker believes that it is on the track for its fourth straight year of record earnings for the fiscal year ending March 2008. Mazda expects 85 billion yen ($715.5 million) in profits, up 15 percent from fiscal 2006.

Mazda said that it is seeing very strong demand for the CX-7, BT-50 truck and Mazda3 in other global markets.

 

Source: The Detroit News

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