It looks like Nissan isn’t going to be the only Japanese automaker to report a drop in profits – Mazda will be announcing its fiscal first quarter results later today, and word is that it is likely to report a 70% year-on-year decline in operating profit for the April-June period, according to the Nikkei.

The publication says that the automaker is expected to report an operating profit of about 10 billion yen (RM380 million) for the term, which is half the market’s expectation of 19.7 billion yen (RM747 million), based on a QUICK Consensus forecast.

Sales are expected to total around 850 billion yen, which is down by around 3%. Meanwhile, global sales are predicted to be around 350,000 units, a drop of a little over 10% from last year, with performances in the US and China not being able to offset a general softening of demand for new vehicles. Unlike Nissan, there looks to be no indication of job cuts or a scaling down in production and models.

The report adds that the company apparently saw its fourth-gen Mazda3 compact sedans and hatchbacks falling short in terms of expected sales.

The car, a core model for the company, was remodeled and its powertrains revamped as the automaker set it out to compete higher up the ladder, against premium European brands, but the changes have also meant an increase in price, something that buyers have naturally not taken to. The shift in preference for SUVs and other large vehicles in the US have also created difficulties for the brand.