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MAZDA REPORTS FINANCIAL RESULTS FOR FISCAL 1993

 FLAT ROCK, Mich., May 28 /PRNewswire/ -- Mazda Motor Corporation, based in Hiroshima, Japan, today announced financial results for its 1993 fiscal year, which ended March 31, 1993.
 Net sales totaled $18,841.6 million (Y2,191,278 million) (A), down 4.9 percent from fiscal 1992 (April 1, 1991 through March 31, 1992).
 Of the total net sales, which includes parts and components for production overseas as well as repair parts, the Japanese domestic market accounted for $7,185.3 million (Y835,656 million), down 13 percent. Export sales accounted for $11,656.2 million (Y1,355,621 million), up 0.9 percent.
 Total vehicle sales amounted to $13,155.2 million (Y1,529,955 million), down 7.4 percent, while the shipment of parts and components for overseas production amounted to $1,598.5 million (Y185,903 million), up 40.7 percent.
 Ordinary income -- income before taxes and extraordinary items -- was $53.6 million (Y6,235 million), down 68.3 percent. Net after-tax income totaled $22.5 million (Y2,620 million), a 71.7-percent decrease.
 Net income per share was $0.02 (Y2.43).
 The fiscal 1993 sales and earnings are non-consolidated, meaning they do not include results of subsidiaries and affiliates.
 The business environment for Japanese automotive manufacturers during this period was far more severe than anticipated. The Japanese domestic market experienced a big decline in demand compared with the previous year, due primarily to the slow economy and sluggish demand for subcompact and micro-mini cars. Overall exports from Japan also declined, due to decreased shipments to the North American and European markets.
 In addition to the decline in domestic sales and exports, the company attributed the earnings reduction to the record appreciation of the Japanese yen against foreign currencies, the increase in depreciation expenses, and the decline in the interest received.
 In this environment, Mazda made efforts to enhance the strength of its product lineup, exerted itself in strengthening sales operations in both the domestic and overseas markets, and reviewed all operations to improve efficiency and reallocate company resources.
 Mazda's total factory unit sales (B) during fiscal 1993 amounted to 1,261,787 units, a decrease of 10.5 percent from the previous 12-month period. This total represents 1,014,848 passenger car units, down 7.2 percent, and 246,939 commercial vehicle units, down 21.8 percent.
 Slow demand in the Japanese domestic market led to a 16-percent overall reduction of Mazda's factory sales in Japan, which totaled 461,758 units. Passenger cars totaled 351,608 units, a 12.8-percent decrease. Commercial vehicles totaled 110,150 units, a 24.7-percent decrease.
 Mazda's factory sales to overseas markets totaled 800,029 units, a 6.9-percent decrease. Passenger car exports were 663,240 units, a decrease of 3.9 percent. Commercial vehicle exports totaled 136,789 units, representing a 19.2-percent decrease.
 Mazda shipments to the South and Central American and Oceanian markets increased. However, the market demand was weak in Europe and signs of recovery in North America were weaker, leading to a slight reduction in overall exports.
 In North America, factory sales of the B-series pick-up truck and the Mazda MPV minivan decreased. Mazda began phasing out exports of the B-series pick-up truck to the North American market during the fiscal period in preparation for the introduction later this year of a new B-series pick-up, which is now manufactured by Ford in the U.S. This phaseout contributed to the significant decrease in Mazda's commercial vehicle exports during fiscal 1993.
 In the European market, although the new 626 and Xedos 6 models were well received, the demand in subcompacts, such as the 121 and the 323, was weak, leading to an overall reduction.
 During the fiscal period, Mazda issued Euro-yen straight bonds totaling $60 billion in August and in December to raise funds for facility investment.
 Commenting on the results for fiscal 1993, Yoshihiro Wada, Mazda Motor Corp. president, said, "Although the government developed comprehensive measures to activate the Japanese economy during the period under review, the automotive market in Japan has not showed a recovery yet and resulted in two consecutive years of decline. Due to the severe export environment for Japanese automotive manufacturers in the North American and European markets, exports from Japan also remained sluggish."
 Mr. Wada continued, "We made efforts to enhance our product competitiveness and to improve operating efficiency by reducing overall operational costs and decreasing fixed costs."
 Commenting on prospects for fiscal 1994, Mr. Wada said, "We are highly committed to strengthening our operations with various measures such as promoting the reduction of fixed costs and costs for vehicle development and manufacturing, while pursuing optimum product values. However, considering the continuing current high yen appreciation and delayed recovery in both the domestic and overseas markets, we regret to say that we will not be profitable for fiscal 1994."
 In conclusion, he said, "The operating environment is expected to remain challenging in the next fiscal year. Under such circumstances, we are going to intensify our efforts to review and renovate the structure of our operation so that we can generate profits even during periods of slow growth."
 (A) Dollar equivalents computed at 116.30 yen to the dollar (the exchange rate prevailing on March 31, 1993).
 (B) Factory unit sales include imports to Japan.
 MAZDA MOTOR CORPORATION
 Highlights of Fiscal 1993 Results
 (In millions)
 Fiscal 1993 Fiscal 1992
 Year Ended Year Ended Increase/
 March 31, 1993 March 31, 1992 Decrease(pct)
 Net sales $18,841.6 Y2,191,278 Y2,304,110 (112,832)/-4.9
 Operating
 income 110.3 12,824 21,015 (8,191)/-39.0
 Ordinary income 53.6 6,235 19,673 (13,438)/-68.3
 Net after-tax
 income 22.5 2,620 9,273 (6,653)/-71.7
 Net income
 per share(a) $0.02 Y2.43 Y8.61 ---
 Dividend per
 share(a) $0.1 Y6.00 Y7.50 ---
 Increase/
 March 31, 1993 March 31, 1992 Decrease
 Total assets $11,426.5 Y1,328,906 Y1,282,182 Y46,724
 Shareholders'
 equity 3,412.8 396,906 401,953 (5,047)
 Shareholders'
 equity ratio 29.9 percent 31.3 percent ---
 NOTES: -- Amounts less than 1 million yen have been omitted.
 -- Dollar equivalents are computed at 116.30 yen to the dollar (exchange rate prevailing on March 31, 1993).
 -- Percentage changes are based on yen figures.
 (a) -- Figures are in yen or dollars, not in millions.
 Increase/
 Fiscal 1993 Fiscal 1992 Decrease(pct)
 Factory Unit
 Sales (units)
 Domestic 461,755 549,627 (87,869)/-16.0
 Export 800,029 859,638 (59,609)/-6.9
 TOTAL 1,261,787 1,409,265 (147,478)/-10.5
 Passenger cars 1,014,848 1,093,679 (78,831)/-7.2
 Commercial
 vehicles 246,939 315,586 (68,647)/-21.8
 TOTAL 1,261,787 1,409,265 (147,478)/-10.5
 Net Sales
 (in millions)
 Domestic $7,185.3 Y835,656 Y960,769 (Y125,113)/-13.0
 Export 11,656.2 1,355,621 1,343,340 12,281/+0.9
 TOTAL 18,841.6 2,191,278 2,304,110 (112,832)/-4.9
 -0- 5/28/93
 /CONTACT: Al Goldberg, 213-936-3114, or Randy Boileau, 313-393-3315, both of Mazda Information Bureau/


CO: Mazda Motor Corporation ST: Michigan IN: AUT SU: ERN

DH-SM -- DE002 -- 3288 05/28/93 09:17 EDT
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