Mazda Motor Corp. said Tuesday its net profit soared 68 percent in the fiscal first half from a year earlier thanks to brisk sales in Europe and vigorous cost-reduction efforts.
Its net profit during the April-September period was 18.7 billion yen. Operating profit jumped 53.1 percent to 43.5 billion yen and sales grew 9.2 percent to 1.32 trillion yen.
The strong results have prompted Mazda to revise upward its earning projection for the year to March. It now forecasts a record operating profit of 78 billion yen, up 11.3 percent from the initial projection.
The Hiroshima Prefecture-based automaker shipped 530,000 vehicles worldwide during the first half, up 0.7 percent from a year earlier.
It recorded domestic sales of 135,000 vehicles, up slightly, helped by the Axela compact, known as the Mazda3 overseas. The Verisa compact, which debuted in late June, also sold well.
In Europe, sales grew 20 percent to 143,000 units. Mazda posted record first-half sales in Britain, Italy, Spain and Portugal, led by strong demand for the Mazda3 and the Mazda6 series, which is known as the Atenza in Japan.
In the United States, Mazda sold 140,000 vehicles, down 3 percent.
The firm said it has expanded production capacity of the popular Mazda3 and has forecast a boost in sales.
Mazda, a third owned by Ford Motor Co. of the U.S., unveiled on Tuesday a midterm business plan through 2006. The plan sets three targets: to expand global shipments by 120,000 units to 1.25 million; exceed 100 billion yen in operating profit; and reduce the debt-equity ratio to less than 100 percent from the current 151 percent.