Mazda posts loss on low demand, strong yen

Mazda Motor Corp., Japan's second- largest car exporter, posted a third consecutive quarterly loss as the global recession cut car demand and a stronger yen hurt earnings.

The company had a loss of 21.5 billion yen ($264 million), or 16.4 yen per share for the three months ended in June, compared with a net profit of 15 billion yen, or 10.63 yen a year ago, Mazda said in a statement. Sales fell 45 percent to 428 billion yen.

Mazda, which exports about 85 percent of domestic production, was hit by the yen's gain in the quarter of about 7 percent against the dollar from a year ago. Mazda reiterated its net loss forecast of 50 billion yen for the year ending in March.

"The stronger yen, along with the obvious global downturn, is hurting Mazda," said Yasuaki Iwamoto, an auto analyst at Okasan Securities Co. in Tokyo, who rates the stock "sell."

The U.S., Germany, Japan and China are giving credits, tax breaks and subsidies to get consumers to trade in old cars for newer fuel-efficient models. The policies are stemming the plunge in auto demand that helped push General Motors Corp. and Chrysler LLC into bankruptcy.

Japan has implemented tax cuts and subsidies on some fuel- efficient cars to spur auto sales. Consumers can apply for a 250,000 yen subsidy if they scrap a car more than 13 years old to buy a new one and 100,000 yen for a new car purchase without scrapping an old one.