TOKYO — Mazda said it expects its operating profit to fall 25 percent in the current fiscal year because of a stronger yen and a slowdown in China and other emerging economies.
The Japanese automaker said it expects 170 billion yen ($1.53 billion) in operating profit in the year to March 2017, down from 227 billion yen in the previous year.
The company also booked a special loss of 40.7 billion yen for the previous year, saying it was setting aside reserves for costs related to airbag inflators used in its products.
In February, it announced it had recalled about 1.9 million vehicles in Japan and abroad to fix airbags manufactured by Takata Corp.
Separately, Mazda’s CEO said the carmaker followed regulations set by governments, seeking to reassure customers after Mitsubishi Motors Corp. revealed it cheated on fuel economy tests in Japan.
“We would like our customers to rest assured, because we are taking the right steps,” Chief Executive Masamichi Kogai told reporters today.
Mitsubishi Motors admitted last week to manipulating test data for four domestic mini-vehicle models, including two it made for Nissan Motor Co.
The country’s transport ministry has asked domestic automakers to submit data on their fuel economy testing procedures to check whether they have been compliant with regulations. A Daihatsu Motor Co. executive also said earlier the automaker had not cheated on fuel economy tests.