Mazda Motor Corporation's third-quarter profit jumped 39 percent from the previous year, and raised its full-year forecast to what would become a record for the Japanese automaker for the second straight year.
Group net profit at Mazda for the three months ended Dec. 31 totaled 10.2 billion yen ($86 million), up from 7.4 billion yen a year earlier. Quarterly sales climbed 8 percent to 741.5 billion yen ($6.3 billion) from 685.6 billion yen the previous year.
The Hiroshima-based automaker affiliated with Ford Motor Co. of the United States lifted its projection for the fiscal year ending March 31 to a 60 billion yen ($506 million) profit, up 31 percent from the previous year. Mazda had earlier expected to post a 55 billion yen ($464 million) profit for fiscal 2005.
The company also revised its fiscal 2005 sales outlook upward to 2.89 trillion yen ($24.4 billion), up 7 percent from fiscal 2004, and better than the previous outlook for 2.82 trillion yen ($23.8 billion) sales.
Overseas sales are stronger than initially expected, and cost reductions and a weaker yen are boosting results, Mazda said in a statement. As a Japanese exporter, Mazda generally gets a sizable lift from a favorable exchange rate. During the October-December period, the dollar cost about 117 yen, up from 106 yen the same period a year earlier.
A model lineup that included more profitable cars and a decline in incentives, or discounts for encouraging sales, also helped Mazda's books in the latest quarter.
In vehicle sales, Mazda expects a 4 percent rise in global wholesale to 1.15 million vehicles for the fiscal year through March, up from 1.1 million the previous year.
Although vehicle sales in Japan were flat amid a sluggish market, sales were growing in North America and Europe and booming in other regions, including China, according to Mazda, 33.4 percent owned by Ford, based in Dearborn, Mich.
"Our results for the first nine months put us on track to achieve record profit levels for a second consecutive year," Gideon Wolthers, chief financial officer, said.
Demand remained strong for the Mazda3 compact in North America and the remodeled MX-5 Miata roadster in Europe, Mazda said.
Mazda is among the Japanese automakers reporting relatively good results at a time when U.S. automakers such as Ford and General Motors Corp. are struggling, losing U.S. market share to the Japanese.
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