Business / Corporate

Mazda forecasts ¥90 billion net loss for full year as pandemic weakens demand

Kyodo

Mazda Motor Corp. on Friday projected a net loss of ¥90 billion ($865 million) for the business year through next March on slowing demand caused by the coronavirus, a turnaround from the ¥12.13 billion profit posted in fiscal 2019.

The automaker expects to see its first red ink since fiscal 2011, with an operating loss of ¥40 billion on sales of ¥2.85 trillion, down 16.9 percent from a year earlier, according to its earnings outlook released Friday.

Mazda has also decided to forgo dividend payments in fiscal 2020 after paying out ¥35 per share the previous year.

In the first quarter through June, the Hiroshima-based automaker reported a net loss of ¥66.69 billion. It logged an operating loss of ¥45.27 billion on sales of ¥376.68 billion, down 55.6 percent from the previous year.

Mazda projects global sales to stand at 1.3 million vehicles in the current year, down 8.4 percent from a year earlier, due to weak demand from everywhere except China.

Your news needs your support

Since the early stages of the COVID-19 crisis, The Japan Times has been providing free access to crucial news on the impact of the novel coronavirus as well as practical information about how to cope with the pandemic. Please consider subscribing today so we can continue offering you up-to-date, in-depth news about Japan.

Coronavirus banner