Mazda reports lower profits despite rising sales

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Japanese car maker Mazda has reported a drop in operating profit, despite posting strong sales growth.

Operating profit for the April-to-June quarter fell 5.4% to 53.32bn yen ($430m; £275m).

Mazda said that earnings were mostly pulled down by depreciation costs for new factories in Thailand and Mexico.

However, global sales rose by 16%, boosted by demand for the Mazda2 and CX-3 model. Sales in China jumped 31%, and were 5.6% higher in North America.

Europe was the only region that saw sales fall.

The company left its forecast for full-year operating profits unchanged at 210bn yen, up from 203bn yen last year.

Rival carmaker Nissan reported results on Wednesday, with first quarter operating profit up by 57% to 193.71bn.

It said the weak Japanese yen had helped to boost sales in the US.