JAPAN: Mitsubishi Motors operating profit up 189%
- Sales up 26% to JPY1,8285bn
- Operating profit up 189% to JPY40.3bn
- Net profit soars 228% to JPY15.6bn
- Global retail sales up 15% to 1,105,000 vehicles
Popularity of ASX/Outlander Sport/RVR small crossover helped lift Mitsubishi sales worldwide
Mitsubishi Motors posted a full year operating profit of JPY40.3bn, a 189% or JPY26.4bn increase over the last fiscal year as an increase in unit sales volume together with factors such as reductions in material and other costs more than offset the negative impact of the strong yen.
Sales rose 26% or JPY382.9bn to JPY1,828.5bn mainly from growth in emerging markets and from the introduction of new models.
Ordinary profit rose JPY25.9bn or 200% to JPY38.9bn and net profit was up JPY10.8bn or 228% to JPY15.6bn.
Global retail sales volume was up 15% or 145,000 units to 1,105,000 vehicles.
In Japan, sales fell 4% to 164,000 vehicles due partly to the drop in demand following the ending of eco-car subsidies in September 2010 coupled with some effects from the 11 March earthquake.
In North America, sales rose 7% to 94,000 vehicles as slow sales in Canada and Mexico were offset by higher sales in the United States, where overall demand showed signs of recovery, along with a boost from the launch of the Outlander Sport (RVR in Japan) in October.
In Europe, Mitsubishi Motors boosted sales 29% to 218,000 vehicles due to strong sales of the ASX (RVR in Japan), launched in June 2010, and higher sales in Russia where local production of the Outlander began.
In Asia and other regions, sales rose 18% to 629,000 vehicles driven by continuing growth in overall demand in China, together with significantly increased sales in major ASEAN bloc countries including Thailand, Indonesia, Malaysia, and the Philippines as well as in Brazil, the largest market in Latin America.
The company declined to forecast fiscal 2011/12 results.
"Mitsubishi Motors is unable to provide forecasts for fiscal year 2011 at the present time. This is due to the extreme difficulty in producing rational forecasts at the current time due to uncertainties stemming from external factors that affect production which include determining how long it will take earthquake-affected parts and component suppliers to return to a stable production basis. MMC will publish its fiscal year 2011 forecasts as soon as it becomes possible to do so," it said in a statement.