Mazda 2010 Annual Report Download - page 44

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Results by Geographic Segment
(Japan)
Net sales declined ¥178.1 billion (9%) from the prior year, to
¥1,867.2 billion, and operating income rose ¥125.8 billion,
to a ¥30.8 billion operating profit. Although sales declined
on lower vehicle wholesales, operating income improved on
fixed cost reductions and other cost improvements.
(North America)
Net sales were ¥112.7 billion (16%) lower year-to-year, at
¥572.1 billion, and operating income declined ¥44.8 billion,
to a loss of ¥19.3 billion. This mostly reflected lower vehicle
wholesales and a stronger yen.
(Europe)
Net sales were down ¥163.8 billion (25%) year-over-year,
at ¥488.7 billion, and operating income was ¥5.1 billion
(59%) lower, at ¥3.5 billion. The declines were mainly
because of lower vehicle wholesales and a stronger yen.
(Other areas)
Net sales declined ¥5.8 billion (3%) from the last year, to ¥225.2
billion, and operating income was down ¥4.3 billion (45%),
to ¥5.4 billion, primarily as a result of the stronger yen.
Net Sales
Consolidated net sales for the March 2010 fiscal year
declined ¥372.0 billion (15%) compared with the prior year,
to ¥2,163.9 billion, on the effects of lower sales volume and
the yen’s appreciation against major currencies. The breakdown
of consolidated net sales showed a decline in overseas sales
of ¥326.7 billion (17%), to ¥1,588.9 billion, and a decline in
sales in Japan of ¥45.3 billion (7%), to ¥575.0 billion.
By product, lower wholesales volume combined with the
yen’s appreciation against major currencies led to a ¥308.6
billion (16%) decline in vehicle sales, to ¥1,573.6 billion.
Sales of knockdown parts for overseas production grew
¥35.4 billion (40%), to ¥124.5 billion, on increased ship-
ments to China, while sales of parts declined ¥46.4 billion
(17%), to ¥226.4 billion. Other sales declined ¥52.4 billion
(18%), to ¥239.5 billion.
Operating Income
Operating income for the year grew ¥37.8 billion from the
last year, to a ¥9.5 billion profit.
The main factor behind this growth was aggregate cost
improvements of ¥175.0 billion from accelerated Cost
Innovation initiatives. Variable costs were reduced by ¥68.0
billion, which included the effect of lower prices for mate-
rials, and fixed costs were reduced by ¥107.0 billion, mainly
through increased efficiency in advertising spending. In
terms of sales volume and product mix, the decline in
demand in major markets depressed first-half sales
volumes, having a major negative impact on operating
income in the amount of ¥60.6 billion. The yen’s appreci-
ation had a ¥76.5 billion negative impact.
Selling, general and administrative expenses were
reduced by ¥98.6 billion, to ¥443.8 billion. This reduction
came primarily from restraining advertising spending as part
of the Group’s cost improvement activities.
Net Income
Net other expenses were ¥16.7 billion. This was mainly due
to provisions that were recorded for losses from businesses
of affiliates and for environmental measures. As a result,
the loss before income taxes was reduced to ¥7.3 billion,
from the previous year’s ¥51.3 billion loss.
As a result, the consolidated net loss was reduced to ¥6.5
billion, from the previous year’s ¥71.5 billion loss. Net loss
per share of common stock was ¥4.26, compared with a net
loss per share of ¥52.13 in the March 2009 fiscal year.
66.7
91.8
(71.5) (6.5)
73.7
)''- )''. )''/ )''0 )'('
(Billions of yen)
(Years ended March 31)
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2,919.8
3,475.8
2,535.9
2,163.9
3,247.5
(Billions of yen)
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(Years ended March 31)
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