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Thread: Mazda says itís considering capital increase after losses mount

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    Administrator ucfbrett's Avatar
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    Default Mazda says itís considering capital increase after losses mount

    This just in from Bloomberg and Automotive News:


    February 2, 2012 - 11:57 am ET

    TOKYO (Bloomberg) -- Mazda Motor Corp., the most unprofitable company among Japanís eight biggest carmakers, said itís considering boosting capital as four years of losses erode equity, threatening its credit rating.

    Repairing Mazdaís capital ďis a must,Ē President Takashi Yamanouchi told reporters in Tokyo today after the companyís earnings presentation. ďWe are considering every option. Nothing has been decided.Ē

    The carmakerís 73 billion yen ($958 million) fiscal third-quarter loss, reported today, lowered the companyís equity 5 percentage points to 19.2 percent of its assets. The drop in the so-called equity ratio triggered Japanís Rating & Investment Information Inc. to warn it may lower its debt rating on Mazda.

    A share sale would give Mazda room to keep its investment-level debt rating as mounting competition and the yenís appreciation prevents the company from making profit. Mazda today downgraded its earnings outlook by projecting its biggest full-year loss in 11 years.

    Mazdaís Yamanouchi said heís confident the company will return to profitability next fiscal year and that the carmaker is ďaggressivelyĒ looking to form an alliance. CLSA Asia-Pacific Markets said in a report last week that Mazda will probably post losses through the year ending March 2014.

    Mazda, which raised 93.3 billion yen in a share sale in 2009, today forecast it will post a 100 billion yen loss in the year ending March, compared with a previous projection for a 19 billion yen loss.

    Read more: http://www.autonews.com/article/2012...#ixzz1lGmPcmka

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    The Real Captain Slow Red_5's Avatar
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    It's tough when your best selling vehicle is a compact, not the most profitable class of vehicle. Hopefully their new design style and more efficient engines will help them become more mainstream. I can't afford to race a Porsche.
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    It says that Mazda is the least profitable of the top 8 Japanese car cos.

    I can only think of 6. Honda, Nissan, Toyota, Subaru, Mitsubishi, and Mazda. Who else is there? Isuzu (no longer in USA)?
    The deposed former Sheriff of trackHQ . . .

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    Senior Member markspd6's Avatar
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    suzuki sells something here.. might be counting acura and lexus as "brands"?

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    Daihatsu is another that made a brief appearance in the U.S. They are still sold in Japan and elsewhere.

    Did anyone else notice that the losses began to mount when the smiley, Nagare cars entered production?

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    Chest hair required Olitho's Avatar
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    I hope this does not mean cut-backs in the Mazda road racing support. Right now they are the biggest and best supporters of club level road racing, and they have been that for years.
    To the right of The Sheriff. Isn't everyone?

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    Administrator ucfbrett's Avatar
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    Quote Originally Posted by Olitho View Post
    I hope this does not mean cut-backs in the Mazda road racing support. Right now they are the biggest and best supporters of club level road racing, and they have been that for years.

    As near as I can figure, the amateur motorsports program pays for itself. I don't know about funding for professional racing, but I hope the company maintains its presence.

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    BMW Master bawareca's Avatar
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    Quote Originally Posted by ucfbrett View Post
    As near as I can figure, the amateur motorsports program pays for itself. I don't know about funding for professional racing, but I hope the company maintains its presence.
    Their best bet is to keep and develop the "sporty" image.I really like the moto"If it doesnt worth driving,it doesnt worth building".The big green is not their brightest moment tho.

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