Mazda Full-Year Profit Triples on Cost Cuts, Models (Update1)
By Lindsay Whipp

Tokyo, April 25 (Bloomberg) -- Mazda Motor Corp., a third owned by Ford Motor Co., said full-year profit almost tripled as the automaker made gains from cost cuts, a weaker yen against the euro and the introduction of the Atenza sedan.

Net income jumped to 24.1 billion yen ($201 million), from 8.83 billion yen, the previous year, the company said in a statement. Sales rose 13 percent to 2.36 trillion yen, while operating profit rose 77 percent to 50.6 billion yen and current profit rose 112 percent to 40.7 billion yen.

That compares with a median estimate of 27.3 billion yen profit derived from a Bloomberg survey of 10 analysts who cover the stock. Mazda's figures are preliminary and the company will release final numbers on May 12.

Mazda revised its forecasts for the current business year. The company expects profit in the year to March 31, 2004 will be 30 billion yen. Sales are forecast to be 2.42 trillion yen. Operating profit is expected to be 65 billion yen this year and current profit will rise to 57 billion yen. The company is basing its earnings forecast on a rate of 115 yen to the dollar and 125 yen to the euro.

The automaker reduced debt to 403.5 billion yen during the year and plans to reduce borrowings to 370.7 billion yen by March. The company had a currency gain of 19.7 billion yen and made cost savings worth 51.6 billion yen.

Mazda's Japanese sales rose 0.6 percent to 270,000 units, while European sales were up 11 percent to 182,000 units.

European sales are forecast to rise 21 percent to 220,000 vehicles in the current business year. Japanese sales are expected to increase 7.4 percent to 290,000 units and U.S. sales will probably rise 8.4 percent to 280,000 units this year.

The company will spend 91 billion yen on research and development, up from 87.8 billion yen, and 55 billion yen on capital investment, compared with 44 billion yen. Cash flow is forecast to fall by 7 billion yen to 40 billion yen.