Citing the global economic downturn, Mazda reported larger-than-expected losses yesterday for the fiscal year ending March 31st. The Japanese automaker also warned that 2009’s result would not be any better, already predicting a wider loss for next year.
According to Automotive News, Mazda reported an operating loss of $291.7 million. In comparison, the Japanese automaker posted a profit of $1.67 billion last year.
Mazda blamed the poor results on sagging global demand. Mazda sold 1.2 million cars globally last year, down 7.5 percent. Sales fell even sharper in the North American market – which represents about 25 percent of Mazda’s total sales – tumbling 14.4 percent to 347,000 units.
Although Mazda predicts the car market will see a slight uptick in the second half of the year, 2009’s fiscal year results will likely be far worse than 2008’s. Mazda expects North American sales to fall another 6.5 percent, dragging down the company’s revenue. In all, Mazda could report a net loss of close to $1 billion next year.
