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Tuesday, 31 January 2017, 16:45 HKT/SGT

Source: Mitsubishi Motors
Mitsubishi Motors Reports Third Quarter Results for Fiscal Year 2016

TOKYO, Jan 31, 2017 - (JCN Newswire) - Mitsubishi Motors Corporation (MMC) today announced a third quarter financial results and revised its forecast upwards for the full fiscal year 2016.

Osamu Masuko, President and CEO of Mitsubishi Motors Corporation, made the following statement: "Our company is adapting more a culture of commitment, discipline and focus on performance following the Alliance with Nissan. We will focus our efforts to recover our performance fully in the second half to establish a solid ground for our V-shaped recovery."

1. Fiscal Year 2016 Third Quarter Financial Highlights

Net revenue during the cumulative three quarters in FY2016 (from April to December) resulted in 1 trillion 341.8 billion in Japanese yen, 19% lower than the same period of previous year. Operating profit was minus 23.2 billion yen due to the large loss through the second quarter.

On a standalone basis for the third quarter (from October to December), profit recovered to 8.4 billion yen as a result of operational efficiency driven mainly by cost reduction, optimized sales expenses, and favorable exchange rates.

Ordinary profit and net income remained negative for the cumulative three quarters but returned to positive for the third quarter alone.

2. Global sales performance

Global sales volume during the cumulative three quarters in FY16 declined to 673,000 units. This is 15% lower than the same period of last year but relatively in line with the revised plan released in October.

Sales in Japan totaled 50,000 units, down by 24% year on year. The drop in sales in the first half coming from the overstated fuel economy issue did not recover fully. However, on a third quarter alone, sales rose by 1,000 units, compared to the same period of previous year. In North America, the sales of Mirage declined but Outlander contributed to the total sales, resulting in 101,000 units, in line as the previous year. In Europe, sales resulted in 132,000 units, down by 16% year on year. This is coming mainly from the sales drop in Russia with lower than expected economy and lower sales of Outlander PHEV in Netherlands.

In Asia, total sales resulted in 229,000 units, which is lower by 5% year on year. Sales declined in ASEAN, in particular Thailand, where performance was lower than previous year. The affect of the new Pajero Sport launch and the Thai Government's tax incentives contributed more positively in the previous year. Sales in China is recovering gradually with the localization in production of the Outlander.

Sales in other regions was 161,000 units, down by 27% compared to the same period of last year as low commodity prices affected Middle East and Latin America.

3. Revision of the full year fiscal 2016 forecast

Based on the financial results of the third quarter and the latest forecasts, Mitsubishi Motors has revised the full year forecast for FY 2016. The operating profit is expected at 1 billion yen, an upward revision of 28.6 billion yen from the original forecast. This is mainly due to improved operating efficiency of 16.9 billion yen and impact of favorable exchange rates of 11.7 billion yen. Consolidated operating profit margin, which dropped to minus 3.7% in the first half, is estimated to increase to 3.2% in the second half. If the operating profit is achieved, the company will mark a 12-year consecutive positive operating profit since FY 2005.

About Mitsubishi Motors

Mitsubishi Motors Corporation is the fifth largest automaker in Japan and the fifteenth largest in the world by global unit sales. It is part of the Mitsubishi keiretsu, formerly the biggest industrial group in Japan, and was formed in 1970 from the automotive division of Mitsubishi Heavy Industries.

Throughout its history it has courted alliances with foreign partners, a strategy pioneered by their first president Tomio Kubo to encourage expansion, and continued by his successors. A significant stake was sold to Chrysler Corporation in 1971 which it held for 22 years, while DaimlerChrysler was a controlling shareholder between 2000 and 2005. Long term joint manufacturing and technology licencing deals with the Hyundai Motor Company in South Korea and Proton in Malaysia were also forged, while in Europe the company co-owned the largest automobile manufacturing plant in the Netherlands with Volvo for ten years in the 1990s, before taking sole ownership in 2001.

Mitsubishi Motors
Public Relations Department 

Jan 31, 2017 16:45 HKT/SGT
Source: Mitsubishi Motors

Topic: Press release summary
Sectors: Automotive
From the Asia Corporate News Network

Copyright © 2017 ACN Newswire. All rights reserved. A division of Asia Corporate News Network.

Fiscal Year 2016 Third Quarter Financial Highlights
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Revision of the full year fiscal 2016 forecast
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