Mazda, Mitsubishi Motors report heavy losses for April-June quarter+

TOKYO, July 30 Kyodo -
Mazda Motor Corp. and Mitsubishi Motors Corp. said Thursday they incurred heavy
group net losses in the April-June quarter against profits a year earlier due
to plunging sales amid the global recession.

The two automakers' earnings reports come a day after full-year outlooks of
Honda Motor Co. and Nissan Motor Co. were sharply divided, with Honda gaining
the upper hand over Nissan due to the former's entry into the hybrid car
market.
For the first quarter of fiscal 2009, Mazda posted a group net loss of 21.52
billion yen against a year-earlier profit of 14.98 billion yen as sales plunged
44.5 percent to 428.23 billion yen.
Mazda's sluggish earnings stemmed from slow sales mainly in the European and
U.S. markets and a stronger yen, which overshadowed the impact of profits due
to cost-cutting measures and a review of advertising expenses.
But sales in the Chinese market were good, with the firm logging a record
41,000 units for the April to June period.
Mitsubishi incurred a consolidated loss of 26.44 billion yen, compared with a
profit of 10.30 billion yen a year earlier, on sales of 259.12 billion yen,
down 57.5 percent.
Mitsubishi also said it will hire about 300 contract workers at its plant in
Okazaki, Aichi Prefecture, on the back of robust sales of its Colt compact car
thanks partly to recently introduced government tax breaks for eco-friendly
vehicle purchases.
The firm will be hiring these workers with an eye to possibly making them
permanent employees in the future.
It is the first time a major Japanese automaker has resumed employment of
nonpermanent workers following a sharp fall in auto production starting in the
fall of last year.
With regard to their fiscal 2009 earnings forecast, the two Japanese automakers
left them unchanged.
For the whole year, Mazda is projecting a group net loss of 50 billion yen,
while Mitsubishi is forecasting a consolidated net profit of 5 billion yen on
expectations of a turnaround in the industry.
==Kyodo