In a victory of sorts over COVID19, Mazda Motor Corporation today revised upwards its consolidated financial forecast for the Fiscal Year Ending 31 March 2021 (April 1, 2020 through March 31, 2021) that was released on November 9, 2020.
“Based on the situation of a steady progress of improvement in marketing expense and carline mix as well as fixed cost reduction, we revised the full-year forecast for the Fiscal Year ending March 31, 2021,” Mazda said. Nevertheless Mazda is still losing money and is in a perilous, company-threatening position with huge soaring debt and ongoing breathtaking operating losses. (See chart on second page.)
The Global retail volume forecast is 1,300 thousand units, which has not been revised from the previous forecast, released on November 9, 2020. However, considering current conditions and future estimates, we have revised market breakdown of global retail volume forecast. The exchange rate assumptions for the Full Year Forecast are 105 yen to the dollar and 123 yen to the Euro.
Financial performance on a consolidated basis for the first nine months of the fiscal year ending March 31, 2021 was: Net sales amounted to ¥1,959.5 billion, a decrease of ¥596.8 billion or 23.3% compared to the same period in the previous fiscal year. Operating loss amounted to ¥32.0 billion. (For the first nine months of the previous fiscal year, operating income was ¥32.3 billion.) Ordinary loss amounted to ¥31.2 billion. (For the first nine months of the previous fiscal year, ordinary income was ¥50.1 billion.) Net loss attributable to owners of the parent amounted to ¥78.2 billion, with the posting of a ¥20.5 billion extraordinary loss of fixed cost during production suspension due to the impact of the novel coronavirus. (For the first nine months of the previous fiscal year, net income attributable to owners of the parent was ¥32.4 billion.)
Operating loss changes (a decrease of ¥64.3 billion compared to the corresponding period in the previous fiscal year) were:
As of December 31, 2020, total assets increased ¥150.0 billion from the end of the previous fiscal year, to ¥2,937.6 billion. Total liabilities increased ¥255.0 billion from the end of the previous fiscal year to ¥1,836.8 billion. Interest-bearing debt as of December 31, 2020 increased ¥299.1 billion from the end of previous fiscal year to ¥918.9 billion mainly due to the increase in long-term loans.
Net Assets as of December 31, 2020 decreased ¥105.1 billion from the end of the previous fiscal year to ¥1,100.8 billion, reflecting net loss attributable to owners of the parent of ¥78.2 billion and the cash dividends of ¥12.6 billion. Equity ratio decreased 5.1 percentage points from the end of the previous fiscal year to 37.0 % (Percentage after consideration of the equity credit attributes of the subordinated loan was 38.2 %).
Cash and cash equivalent as of December 31, 2020 increased ¥177.6 billion from the end of the previous fiscal year to ¥745.6 billion. Interest-bearing debt as of December 31, 2020 increased ¥299.1 billion from the end of previous fiscal year to ¥918.9 billion. As a result, after subtracting cash and cash equivalents from the interest-bearing debt, net interest-bearing debt amounted to ¥173.4 billion.
Cash flows for the first nine months of the fiscal year ending March 31, 2021 were:
Net cash used in operating activities was ¥36.4 billion, reflecting loss before income taxes of ¥54.5 billion, decrease in trade notes and accounts receivable, etc. (For the first nine months of the previous fiscal year, net cash used in operating activities was ¥34.7 billion.)
Net cash used in investing activities was ¥59.5 billion, mainly reflecting capital expenditure for the acquisition of property, plant and equipment of ¥51.7 billion. (For the first nine months of the previous fiscal year, net cash used in investing activities was ¥104.6 billion.)
As a result, consolidated free cash flow (net of operating and investing activities) was negative ¥95.9 billion. (For the first nine months of the previous fiscal year, consolidated free cash flow was negative ¥139.3 billion.)
Net cash provided by financing activities was ¥264.3 billion, mainly reflecting the procurement of funds for capital risk due to the impact of the novel coronavirus. (For the first nine months of the previous fiscal year, net cash provided by financing activities was ¥6.0 billion.)
About Ken Zino
Ken Zino, editor and publisher of AutoInformed, is a versatile auto industry participant with global experience spanning decades in print and broadcast journalism, as well as social media. He has automobile testing, marketing, public relations and communications experience. He is past president of The International Motor Press Assn, the Detroit Press Club, founding member and first President of the Automotive Press Assn. He is a member of APA, IMPA and the Midwest Automotive Press Assn.
He also brings an historical perspective while citing their contemporary relevance of the work of legendary auto writers such as Ken Purdy, Jim Dunne or Jerry Flint, or writers such as Red Smith, Mark Twain, Thomas Jefferson – all to bring perspective to a chaotic automotive universe.
Above all, decades after he first drove a car, Zino still revels in the sound of the exhaust as the throttle is blipped during a downshift and the driver’s rush that occurs when the entry, apex and exit points of a turn are smoothly and swiftly crossed. It’s the beginning of a perfect lap.
AutoInformed has an editorial philosophy that loves transportation machines of all kinds while promoting critical thinking about the future use of cars and trucks.
Zino builds AutoInformed from his background in automotive journalism starting at Hearst Publishing in New York City on Motor and MotorTech Magazines and car testing where he reviewed hundreds of vehicles in his decade-long stint as the Detroit Bureau Chief of Road & Track magazine. Zino has also worked in Europe, and Asia – now the largest automotive market in the world with China at its center.
Mazda Increases Forecast for Fiscal Year Ending March 31
In a victory of sorts over COVID19, Mazda Motor Corporation today revised upwards its consolidated financial forecast for the Fiscal Year Ending 31 March 2021 (April 1, 2020 through March 31, 2021) that was released on November 9, 2020.
“Based on the situation of a steady progress of improvement in marketing expense and carline mix as well as fixed cost reduction, we revised the full-year forecast for the Fiscal Year ending March 31, 2021,” Mazda said. Nevertheless Mazda is still losing money and is in a perilous, company-threatening position with huge soaring debt and ongoing breathtaking operating losses. (See chart on second page.)
Financial performance on a consolidated basis for the first nine months of the fiscal year ending March 31, 2021 was: Net sales amounted to ¥1,959.5 billion, a decrease of ¥596.8 billion or 23.3% compared to the same period in the previous fiscal year. Operating loss amounted to ¥32.0 billion. (For the first nine months of the previous fiscal year, operating income was ¥32.3 billion.) Ordinary loss amounted to ¥31.2 billion. (For the first nine months of the previous fiscal year, ordinary income was ¥50.1 billion.) Net loss attributable to owners of the parent amounted to ¥78.2 billion, with the posting of a ¥20.5 billion extraordinary loss of fixed cost during production suspension due to the impact of the novel coronavirus. (For the first nine months of the previous fiscal year, net income attributable to owners of the parent was ¥32.4 billion.)
Operating loss changes (a decrease of ¥64.3 billion compared to the corresponding period in the previous fiscal year) were:
As of December 31, 2020, total assets increased ¥150.0 billion from the end of the previous fiscal year, to ¥2,937.6 billion. Total liabilities increased ¥255.0 billion from the end of the previous fiscal year to ¥1,836.8 billion. Interest-bearing debt as of December 31, 2020 increased ¥299.1 billion from the end of previous fiscal year to ¥918.9 billion mainly due to the increase in long-term loans.
Net Assets as of December 31, 2020 decreased ¥105.1 billion from the end of the previous fiscal year to ¥1,100.8 billion, reflecting net loss attributable to owners of the parent of ¥78.2 billion and the cash dividends of ¥12.6 billion. Equity ratio decreased 5.1 percentage points from the end of the previous fiscal year to 37.0 % (Percentage after consideration of the equity credit attributes of the subordinated loan was 38.2 %).
Cash and cash equivalent as of December 31, 2020 increased ¥177.6 billion from the end of the previous fiscal year to ¥745.6 billion. Interest-bearing debt as of December 31, 2020 increased ¥299.1 billion from the end of previous fiscal year to ¥918.9 billion. As a result, after subtracting cash and cash equivalents from the interest-bearing debt, net interest-bearing debt amounted to ¥173.4 billion.
Cash flows for the first nine months of the fiscal year ending March 31, 2021 were:
Net cash used in operating activities was ¥36.4 billion, reflecting loss before income taxes of ¥54.5 billion, decrease in trade notes and accounts receivable, etc. (For the first nine months of the previous fiscal year, net cash used in operating activities was ¥34.7 billion.)
Net cash used in investing activities was ¥59.5 billion, mainly reflecting capital expenditure for the acquisition of property, plant and equipment of ¥51.7 billion. (For the first nine months of the previous fiscal year, net cash used in investing activities was ¥104.6 billion.)
As a result, consolidated free cash flow (net of operating and investing activities) was negative ¥95.9 billion. (For the first nine months of the previous fiscal year, consolidated free cash flow was negative ¥139.3 billion.)
Net cash provided by financing activities was ¥264.3 billion, mainly reflecting the procurement of funds for capital risk due to the impact of the novel coronavirus. (For the first nine months of the previous fiscal year, net cash provided by financing activities was ¥6.0 billion.)
About Ken Zino
Ken Zino, editor and publisher of AutoInformed, is a versatile auto industry participant with global experience spanning decades in print and broadcast journalism, as well as social media. He has automobile testing, marketing, public relations and communications experience. He is past president of The International Motor Press Assn, the Detroit Press Club, founding member and first President of the Automotive Press Assn. He is a member of APA, IMPA and the Midwest Automotive Press Assn. He also brings an historical perspective while citing their contemporary relevance of the work of legendary auto writers such as Ken Purdy, Jim Dunne or Jerry Flint, or writers such as Red Smith, Mark Twain, Thomas Jefferson – all to bring perspective to a chaotic automotive universe. Above all, decades after he first drove a car, Zino still revels in the sound of the exhaust as the throttle is blipped during a downshift and the driver’s rush that occurs when the entry, apex and exit points of a turn are smoothly and swiftly crossed. It’s the beginning of a perfect lap. AutoInformed has an editorial philosophy that loves transportation machines of all kinds while promoting critical thinking about the future use of cars and trucks. Zino builds AutoInformed from his background in automotive journalism starting at Hearst Publishing in New York City on Motor and MotorTech Magazines and car testing where he reviewed hundreds of vehicles in his decade-long stint as the Detroit Bureau Chief of Road & Track magazine. Zino has also worked in Europe, and Asia – now the largest automotive market in the world with China at its center.