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 DETROIT, Nov. 12 /PRNewswire/ -- Mazda Motor Corp. today announced its non-consolidated financial results for the first half of its 1994 fiscal year, ended Sept. 30, 1993.
 Net sales for the six-month period (April 1 through Sept. 30) totaled $8.33 billion (876,075 million yen)(a), 22.4 percent less than the comparable six-month period a year ago.
 Ordinary income (income before taxes and extraordinary items) registered a loss of $147.7 million (15,533 million yen). Net after-tax income recorded a loss of $150.3 million (15,809 million yen).
 Net loss per share was 14 cents (14.69 yen).
 The business environment in both the Japanese and overseas markets was very difficult for Japanese automotive manufacturers during the six- month period. Demand in the Japanese domestic market was sluggish due to the continuing recession in Japan. Exports also declined due to the dramatic appreciation of the yen against the dollar and other foreign currencies, as well as a sluggish demand in the European market and an increase of local production in the United States.
 In this environment, Mazda made efforts to enhance its product strength and to reinforce its sales operations. However, the business environment was more severe than had been expected, and, despite the measures Mazda has taken, total factory sales declined during the first half of fiscal 1994.
 Mazda's total factory unit sales(b) during the first half of fiscal 1994 amounted to 503,810 units, a decrease of 22.1 percent from last year. The total reflects 411,981 passenger cars and 91,829 commercial vehicles.
 Factory sales in Japan accounted for 208,044 of the total, down 17 percent due to sluggish demand because of the recession, and overseas markets accounted for 295,766 sales, a 25.3 percent decrease. Contributing to the decreased exports was a phase-out pickup truck production in Japan for the North American market and the start of pickup truck production in the United States under a purchase agreement with Ford.
 Breaking down the exports by geographic region, shipments to the Asian, African, and Central & South American markets increased, while shipments to the North American, European, and Middle Eastern markets decreased, affected by the high yen appreciation as well as slow demand in the European market.
 Of Mazda's total net sales during the period, vehicle sales accounted for $5.65 billion (594,223 million yen), down 25.6 percent. The shipment of parts and components for overseas production totaled $730.1 million (76,774 million yen), down 16.9 percent. Sales of repair parts and accessories accounted for $1.27 billion (133,647 million yen), down 5.6 percent, and other items accounted for $679.3 million (71,430 million yen).
 The Japanese domestic market accounted for $3.4 billion (357,559 yen) of total net sales, while overseas sales accounted for $4.93 billion (518,515 yen). Domestic and overseas sales decreased 21.3 percent and 23.2 percent, respectively.
 Commenting on the results, Yoshihiro Wada, Mazda Motor Corp. president, said, "Automobile sales in the Japanese market are still sluggish and are estimated to decrease three years in a row. The business environment in major overseas markets also remains severe. In this situation, we have devoted ourselves to rationalization and improving efficiency in all of our operations, including the strengthening of our sales operations, improvement in production efficiency, and reduction of costs and expenditures."
 Looking toward the future, Wada stated, "The business environment is still expected to remain challenging. Under such circumstances, we are going to intensify our efforts to review and renovate our financial foothold to be profitable even when large growth in sales cannot be expected.
 (a) Dollar equivalents computed at 105.15 yen to the dollar, the exchange rate prevailing on Sept. 30, 1993.
 (b) Factory unit sales include imports.
 Highlights of the First Half of Fiscal 1994
 (In millions)
 First Half
 Fiscal 1994 Fiscal 1993
 Six months ended Six months ended
 Sept. 30, 1993 Sept. 30, 1992
 Net sales US$8,331.7 Yen 876,075 Yen 1,129,564
 Operating income -150.2 -15,793 6,639
 Ordinary income -147.7 -15,533 3,055
 Net after-tax
 income -150.3 -15,809 621
 Net income
 per share(a) -$0.14 -Yen 14.69 Yen 0.57
 per share(a) --- --- Yen 3.00
 Full Year
 Fiscal 1993
 Increase/ Year ended
 (Decrease) March 31, 1993
 Net sales (Yen 253,489) -22.4 pct Yen 2,191,278
 Operating income (22,432) --- 12,824
 Ordinary income (18,588) --- 6,235
 Net after-tax income (16,430) --- 2,620
 Net income per share(a) Yen 2.43
 Dividend per share(a) Yen 6.00
 Sept. 30, 1993 March 31, 1993
 Total assets US$11,948.2 Yen 1,256,350 Yen 1,328,906
 equity 3,593.0 377,803 396,906

 equity ratio 30.1 pct 29.9 pct
 Increase/(Decrease) Fiscal 1993
 Total assets (72,556) Yen 1,296,844
 Shareholders' equity (19,103) 398,134
 Shareholders' equity ratio 30.7 pct
 First Half
 Fiscal 1994 Fiscal 1993
 Factory unit sales (units)
 Domestic 208,044 250,730
 Export 295,766 395,946
 Total 503,810 646,676
 Passenger cars 411,981 513,982
 Commercial vehicles 91,829 132,694
 Total 503,810 646,676
 Net sales (in millions)
 Domestic US$3,400.5 Yen 357,559 Yen 454,334
 Export 4,931.2 518,515 675,230
 Total 8,331.7 876,075 1,129,564
 Increase/ Full Year
 (Decrease) Fiscal 1993
 Factory unit
 sales (units)
 Domestic (42,686) -17.0 pct 461,758
 Export (100,180) -25.3 800,029
 Total (142,866) -22.1 1,261,787
 Passenger cars (102,001) -19.8 1,014,848
 vehicles (40,865) -30.8 246,939
 Total (142,866) -22.1 1,261,787
 Net sales
 (in millions)
 Domestic (96,775) -21.3 Yen 835,656
 Export (156,713) -23.2 1,355,621
 Total (253,489) -22.4 2,191,278
 Fiscal 1994 (the year ending March 31, 1994) Results Forecast
 (in millions of yen)
 Net sales 1,890,000
 Ordinary income -32,000
 Net after-tax income -32,000
 Dividends per share(a) ---
 Amounts less than 1 million yen have been omitted.
 Dollar equivalents are computed at Yen 105.15 to the dollar
 (exchange rate prevailing on Sept. 30, 1993).
 Percentage changes are based on yen figures.
 (a) Figures are in yen or dollars, not in millions.
 -0- 11/12/93
 /CONTACT: Randy Boileau, Mazda Information Bureau, 313-393-3315/

CO: Mazda Motor Corp. ST: California, Michigan IN: AUT SU: ERN

JL-LS -- LA006 -- 3548 11/12/93 09:33 EST
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Date:Nov 12, 1993

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