Japan's Mazda sinks into red

Mazda of Japan said on Tuesday it fell into the red in the last financial year as sales tumbled and the yen strengthened amid the global economic crisis.

Mazda, whose biggest shareholder is ailing US giant Ford, warned it would suffer another loss this year as demand is expected to stay weak.

It posted a net loss of ¥71,5-billion for the year to March, a dramatic turnaround from a record profit of ¥91,84-billion the previous year, when it had enjoyed brisk sales in North America and Europe.

The net loss was bigger than the Hiroshima-based company’s own forecast because of losses on fixed assets and increased tax costs, it said.

Operating losses came to ¥28,4-billion against a year-earlier profit of ¥162,1-billion. Revenue tumbled 27% to ¥2,53-trillion.

For the current business year to March, Mazda expects a ¥50-billion net loss. Revenue is forecast to fall 19,9% to ¥2,03-trillion.—AFP

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