Mazda 2007 Annual Report Download - page 53
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the introduction of the all-new Mazda Tribute in addition to the Mazda CX-7 and the Mazda CX-9,
contributing to performance in the light truck segment. Mazda retail sales in Europe grew 6.7%,
to 301,000 units. Chalking up particularly strong sales in this market were Mazda5 and Mazda6
models mounted with all-new diesel engines, and the Mazda MX-5 with a new power retractable
hardtop. In China, rapid-fire new car launches and fierce competition for sales of pre-existing
models resulted in a slight drop in Mazda retail sales in this market, to 129,000 units. In other
markets, sales of the Mazda BT-50 pickup encouraged a 1.5% rise, to 231,000 units. As a
result of these factors, Mazda’s global retail volume expanded 2.0%, to 1,302,000 units.
Consolidated wholesales in fiscal 2006 totaled 1,177,000 units, up 28,000 units, or 2.4%, led
by higher sales of all-new crossover sport-utility vehicles (SUVs) in the North American
market. Consolidated net sales increased 11.2%, or ¥327.7 billion, to ¥3,247.5 billion. Of this
increase, higher unit sales and an improved product mix accounted for 7.2 percentage points,
and the effect of yen depreciation for the remaining 4.0 points. Of consolidated net sales,
overseas sales rose 16.1%, or ¥328.1 billion, to ¥2,360.2 billion, whereas domestic sales dipped
to ¥887.3 billion.
Operating income
Operating income increased 28.4% year on year, or ¥35.1 billion, to a new record high of
¥158.5 billion. The main causes of this rise included higher unit sales and an improved model
mix due to the launch of the Mazda CX-7 and the Mazda CX-9, which together had a ¥31.1
billion positive effect. The weaker yen generated a ¥40.0 billion positive foreign currency
translation effect for the Company. Cost-cutting efforts outpaced higher raw materials costs by
¥12.1 billion, but the cost of regulatory compliance and product enhancements had a ¥18.7
billion negative effect on operating income, and costs related to product quality assurance,
R&D, depreciation and other factors came to ¥29.5 billion. As the percentage increase in
operating income outpaced the rate of growth in net sales, the operating income ratio improved
0.7 percentage point, to 4.9%.
Net income
Net other expenses rose ¥34.1 billion, to ¥40.1 billion. Of this rise, higher overseas interest
rates caused interest expenses to rise ¥4.6 billion, and equity in income of unconsolidated
subsidiaries and affiliated income decreased ¥2.8 billion. In addition, the temporary gain on the
(Thousands of Units)
Consolidated Wholesales Net Sales
(Billions of Yen)
2006200520042003*2002
2006200520042003*2002
0
300
600
900
1,200
0
700
1,400
2,100
2,800
3,500
Domestic Overseas Domestic
*Excluding the effect of a change in fiscal
years at overseas subsidiaries
*Excluding the effect of a change in fiscal
years at overseas subsidiaries
Overseas