TOKYO: Japan's Mazda Motor said Thursday it suffered a $33 million loss for the three months to December due to an end to government incentives and the impact of a strong yen.Japan's fifth biggest car maker by sales incurred 2.7 billion yen ($33 million) in group net loss for the quarter, reversing a net profit of 4.4 billion yen in the same quarter a year earlier.
"Demand decreased significantly in the third quarter of the fiscal year due to a backlash from the expiration of the subsidy scheme," the Hiroshima-based automaker said in a statement. "Also, the trend of a strong yen continued."
Japanese exporters have had to work to stay competitive as the strong yen, which hit a 15-year high against the dollar in November, makes their products more expensive overseas and erodes repatriated earnings.
Japan's automakers have also faced a slide in demand at home since government subsidies for purchases of environmentally friendly vehicles expired in September last year. Mazda's loss defied the average forecast for a 1.76 billion yen profit based on a survey of seven analysts by the Nikkei business daily.Operating profit plunged to 1.1 billion yen in the period from 11.1 billion yen a year earlier, while sales remained nearly flat at 560 billion yen.
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