Japanese carmaker Mazda Motor Corp. said today it plunged to a record net loss of 155.2 billion yen ($1.29 billion) in the year to March due to one-off retirement charges and foreign exchange losses.
"We posted the biggest loss ever," said Mazda's finance director Mr Keishi Egawa.
However, the troubled automaker said it aimed to break even in the current year.
Mazda said it lost 57.5 billion yen due to a strong yen and was hit by a further 39.6 billion yen loss after it closed a plant in Hiroshima in western Japan and implemented an early retirement scheme.
"This unfavourable result includes 154.6 billion yen for the full write-off for retirement benefits," said the carmaker added in a statement.
The huge loss contrasted with a net profit of 6.19 billion yen a year earlier.
Revenue slipped 6.7 percent to 2.02 trillion yen, partially due to weak domestic sales, with pre-tax losses at 29.8 billion yen against a pre-tax profit of 6.19 billion yen a year earlier.
A weak Japanese economy meant sales at home dropped 3.4 per cent from last year to 333,803 vehicles.The number of cars sold overseas skidded 5.6 per cent to 630,188, reflecting lower sales in Europe said the company.
Despite the record losses, the company said it was committed to breaking even in the current year due to higher foreign sales.
"We forecast a growth in sales in North America, Australia and other regions helped by the weakening yen," said Mr Egawa.
He added that further cost cutting would help push up earnings.
Sales were predicted at 2.14 trillion yen, with pre-tax profit at two billion yen and a zero net profit.
Mazda, the only Japanese carmaker to lack significant overseas plant capacity, had been badly hurt by the euro's enduring weakness, which had depressed revenue in yen terms.
Mazda, which is 33.3 per cent-owned by US giant Ford, unveiled a five year strategic plan in November as part of an ongoing brand revival.
Under the plan, the company decided to shut one of its plants at its sprawling Hiroshima base in western Japan, and to increase joint production in Thailand and the United States with Ford.
Mazda shares were down 1.3 percent at 317 yen by the end of the morning session on the Tokyo Stock Exchange, reflecting an overall aversion for exporters' stocks following recent rises by the yen, traders said. Mazda's poor results had already been factored into prices.
AFP