Mazda Returns to Profit, Paralleling Daimler's Trajectory

(MoneyWatch)  In another indication that the global auto industry could be staggering towards a recovery, Mazda announced today it managed a thin profit for the quarter just ended of about $7.4 million.

Mazda's result was down 95 percent from the year-ago quarter, but a substantial improvement after three consecutive quarters of operating losses. Scrappage programs in Europe and the Cash for Clunkers program in the United States helped.

Daimler in Germany reported a similar trajectory earlier this week, with a small profit for the latest quarter, after three quarters of losses.

The quarter that ended Sept. 30 was the second quarter of Mazda's 2009 fiscal year, which began April 1. For the first half of the fiscal year, Mazda had a net loss of about $217 million.

Like every other automaker, Mazda said it is cutting costs to fit lower demand. Mazda's global retail volume fell 18 percent in the first half of the fiscal year, to 577,000 units, the company said.

Mazda's goal is to achieve profitability while producing at only 80 percent of its worldwide capacity. The company has cut marketing expenses and spent less on research and development in the first half of the fiscal year.

Mazda also plans to raise almost $1 billion through a public offering and the sale of treasury shares, to finance R&D and capital spending for a new generation of environmentally friendly and alternate-fuel Mazda vehicles.

Ford sold a controlling stake in Mazda a year ago. Ford retained less than a 15 percent stake in Mazda, which will be further diluted by Mazda's newest public offering.

Chart: Mazda