Mitsubishi Motors Corporation (MMC) today announced its sales and financial results for the first quarter of the fiscal year ending March 31, 2008.
1. Performance overview
Mitsubishi Motors reports that consolidated net sales in the first quarter of fiscal 2007 (April 1 through June 30, 2007) increased by 146.9 billion yen to 630.8 billion yen - a 30%-plus increase over the same period last fiscal year (483.9 billion yen). The gain stems principally from the increased revenue coming from higher sales volume and from favorable yen exchange rates.
Operating and ordinary income were both in the black. Mitsubishi Motors posted an operating profit of 6.0 billion yen, an improvement of 12.8 billion yen from the same period last fiscal year. Factors contributing to this improvement include increased volume and favorable changes in the model mix, and the weaker yen which offset higher marketing and overhead costs due to increased advertising and publicity outlays in North America related to new-vehicle introduction. The company posted an ordinary profit of 2.6 billion yen, a year-on-year gain of 14.8 billion yen.
Mitsubishi Motors reported a net loss of 8.2 billion yen for the period, a year-on-year improvement of 6.9 billion yen. This gain was made despite the company booking a one-time charge for reorganization costs stemming from the integration of its domestic consolidated sales companies that was completed on July 1, 2007 and despite an increase in income taxes.
2. Sales Volume
Global retail market unit sales of vehicles in the first quarter of fiscal 2007 totaled 334,000 vehicles, a 14% increase of 41,000 on the 293,000 sold in the same period in fiscal 2006.
In Japan MMC sold 46,000 vehicles, an 11% drop of 6,000 compared to the same period last year. In a domestic market that continues to fail to show signs of recovery, the increase in registered vehicle sales sparked by the introduction of the Mitsubishi Delica D:5 was not sufficient to offset a decline in minicar sales.
In North America, the company sold 52,000 vehicles, a 22% increase of 10,000 over the same period last year. The increase was driven principally the launch of the new Mitsubishi Lancer which had its global launch in the region in March 2007, following the Mitsubishi Outlander SUV launched in November 2006.
In Europe, Mitsubishi Motors sold 80,000 vehicles, a 12% increase of 9,000 driven by continued robust sales in Russia and a doubling of sales in the Ukraine.
In Asia and other regions, MMC sold 156,000 vehicles, a 22% increase of 28,000 over the same period last fiscal year. This growth stemmed from reasons including: higher unit sales of Mitsubishi brand models in China; the market recovery in Indonesia and other nations in the ASEAN block; and continued firm sales in Latin America, the Middle East and Africa.
3. FY2007 forecasts
Mitsubishi Motors leaves the fiscal 2007 first-half and full-year forecasts announced on April 26, 2007 unchanged at this time.
Note on forward-looking statements
All statements herein, other than historical facts, contain forward-looking statements and are based on our current forecasts, expectations, targets, plans, and evaluations. Any forecasted value is calculated or obtained based on certain assumptions. Forward-looking statements involve inherent risks and uncertainties. A number of significant factors could therefore cause actual results to differ from those contained in any forward-looking statement. Significant risk factors include:
- feasibility of each target and initiative as laid out in this presentation;
- fluctuations in interest rates, exchange rates and oil prices, etc;
- changes in laws, regulations and government policies;
- regional and/or global socioeconomic changes
Potential risks and uncertainties are not limited to the above and MMC is not under any obligation to update the information in this presentation to reflect any developments or events in the future.
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