Mazda Motor has reported an interim net profit for the first time in two years and is optimistic of making a profit this financial year.
Mazda's interim group net profit rose to 1.3 billion yen (£7.4m), a turnaround from a net loss of 9.6 billion yen (£54.7m) in the same period last year. The turnaround has been put down to a weaker yen and cost-cutting measures.
Mazda expects these factors and the introduction of new models to move it into profitability in the full-year. It forecast net profits of 1.3 billion yen (£7.4m), up from its previous forecast of breakeven, and a turnaround from record net losses of 155.2 billion yen (£884.5m) last year. It expects sales of 2,090 billion yen (£11.9 billion), up 3.7% from last year.
Sales at Japan's fifth-largest car maker rose 3.2% to 1,038 billion yen from 1,006 billion yen in the same period last year, partly on the weaker yen, pushing operating profits to 11.2 billion yen from losses of 4.7 billion yen last year. Overseas sales rose 5.3%, while domestic sales fell 11.2% in the first-half because of the dearth of new models. For the full-year, Mazda expects sales of 2,090 billion yen, up 3.7% from 2,020 billion (£11.5 billion)last year, but lower than its previous forecast of 2,140 billion (£12.2 billion).