Top Page | English | 简体中文 | 繁體中文 | 한국어 | 日本語
Tuesday, 9 May 2017, 14:17 HKT/SGT

Source: Mitsubishi Motors
Mitsubishi Motors Reports Financial Results for Fiscal Year 2016 and Issues Forecast for Fiscal 2017
- Strong second-half initiates V-shaped recovery -

TOKYO, May 9, 2017 - (JCN Newswire) - Mitsubishi Motors Corporation (MMC) today announced financial results for the 12 months ending March 31, 2017, and published its financial outlook for the current fiscal year.

The company reported an operating profit of 5.1 billion yen on revenues of 1.9 trillion yen for fiscal 2016, representing an operating margin of 0.3%. The full year figures reflect a sharp recovery in the second-half, after the company reversed the 31.6 billion yen operating loss reported in the six months to September 30 by delivering a 36.7 billion yen operating profit in the subsequent six-month period on revenues of 1.04 trillion yen, representing an operating margin of 3.5%.

Osamu Masuko, President, Chief Executive Officer, said: "Mitsubishi Motors saw a stronger performance in the second-half of fiscal 2016, which enabled us to report a full-year net operating profit. Although our 12-month results were marred by the fuel economy scandal in Japan during the first half, we have begun a V-shaped recovery. Following the strategic investment by Nissan last fall, we are now seeing the initial benefits of our partnership and the first synergies from our membership of the wider Renault-Nissan Alliance."

1. Fiscal Year 2016 Global Sales and Financial Highlights

Global sales volume in Fiscal Year 2016 declined 12% year-on-year to 926,000 units. Unit sales recovered in the second half of the year in Japan - partly reflecting the resumption of Kei-car sales - and reached the planned volume in almost all other regions.

The full-year net revenues for Fiscal Year 2016 decreased 16% year-on-year to 1.9 trillion yen. An operating loss in the first half of 31.6 billion yen was offset by a strong second-half performance to secure a full-year operating profit of 5.1 billion yen. The company recorded a full-year net loss of 198.5 billion yen, reflecting the fuel economy issue in the first half, but returned to profitability by generating net income of 21.1 billion yen in the second half.

2. Financial Outlook for Fiscal Year 2017

MMC today forecast that global sales in Fiscal Year 2017 would increase by 11% year-on-year to 1.029 million units. Sales are expected to be enhanced by new product launches including the "Eclipse Cross", a technically-advanced compact SUV, and new "compact MPVs" to be manufactured at the company's recently inaugurated plant in Indonesia. Sales in China are expected to benefit from increased production capacity at MMC's joint venture in the country and an enhanced Chinese dealer network. A continued recovery in Japan since the latter half of Fiscal 2016 is also likely to support overall growth.

MMC filed the following financial forecast for FY2017 with the Tokyo Stock Exchange today: net sales are projected to rise 5% year-on-year to 2 trillion yen. Based on prudent exchange rate assumptions, MMC expects to achieve operating profits of 70 billion yen, representing a 3.5% operating margin. Net income is forecast to be 68 billion yen, which implies a recovery to the levels reported in Fiscal Year 2015.

Mr. Masuko said: "In the year ahead, we will continue our reform program and accelerate investment in growth. This will help us achieve our V-shaped earnings recovery and further leverage our Alliance with Nissan. More specifically, during the next mid-term plan, we intend to increase our annual sales volume, which has hovered around 1 million units over the past 10 years, by 25% to 1.25 million units.

"The combination of our volume expansion and efforts to improve operational efficiency will help the company to return to a sustainable operating margin of 6%. The management team is now developing plans to ensure we can achieve these goals during the next mid-term plan period to Fiscal Year 2019. We will strive to generate solid free cash flow, while also rewarding shareholders with a competitive dividend."

About Mitsubishi Motors

Mitsubishi Motors Corporation is the sixth largest automaker in Japan and the sixteenth largest in the world. 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. From October 2016, Mitsubishi is one-third owned by Nissan, and a part of the Renault - Nissan - Mitsubishi Alliance. For more information, please visit

May 9, 2017 14:17 HKT/SGT
Source: Mitsubishi Motors

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

Copyright © 2018 ACN Newswire. All rights reserved. A division of Asia Corporate News Network.

Mitsubishi Motors Links

Mitsubishi Motors
June 22, 2018 14:38 HKT/SGT
Mitsubishi Motors: New Eclipse Cross Awarded 5-star Adult Occupant Protection Rating in 2018 Latin NCAP
June 14, 2018 07:55 HKT/SGT
Renault - Nissan - Mitsubishi Increase Annual Synergies to Euro 5.7 Billion
June 7, 2018 07:39 HKT/SGT
Mitsubishi Motors: V2G Demonstrator Project Using EVs as Virtual Power Plant Resource
June 5, 2018 15:03 HKT/SGT
Mitsubishi Motors Thailand Officially Opens Training Facility in Pathum Thani
June 4, 2018 18:38 HKT/SGT
Mitsubishi Motors Thailand Marks Five Million Units Production Milestone
Apr 27, 2018 08:04 HKT/SGT
Mitsubishi Motors Announces Production, Sales and Export Figures for March 2018 and 2017 Fiscal Year
Apr 25, 2018 16:19 HKT/SGT
Mitsubishi Motors Launches XPANDER Exports from Indonesia
Apr 24, 2018 18:15 HKT/SGT
Nissan and Mitsubishi Motors Team Up on Spare Parts Warehousing in Japan's Kanto Region
Apr 23, 2018 15:16 HKT/SGT
Mitsubishi Eclipse Cross and GT-PHEV Scoop Prestigious GOOD DESIGN Awards
Apr 16, 2018 16:37 HKT/SGT
Mitsubishi Motors Brings New EV and PHEV Vehicles to Da Nang City in Vietnam
More news >>
 News Alerts
Copyright © 2018 ACN Newswire - Asia Corporate News Network
Home | About us | Services | Partners | Events | Login | Contact us | Privacy Policy | Terms of Use | RSS
US: +1 800 291 0906 | Beijing: +86 10 8405 3688 | Hong Kong: +852 2217 2912 | Singapore: +65 6304 8926 | Tokyo: +81 3 6721 7212

Connect With us: