Mitsubishi Motors’ forecasts for its fiscal first half and full year remain unchanged after the automaker on Monday reported a Q1 net loss of JPY8.2bn yen, though that was a year-on-year improvement of 6.9bn yen.
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Consolidated net sales increased 146.9bn yen to 630.8bn yen due to increased revenue from higher unit sales volume and favourable yen exchange rates.
Operating and ordinary income were both in the black, though. Mitsubishi Motors posted an operating profit of 6.0bn yen, an improvement of 12.8bn yen from the same period last fiscal year. Contributing factors included increased volume and favourable changes in the model mix, and the weaker yen which offset higher marketing and overhead costs due to increased advertising and publicity costs in North America related to new vehicle launches.
The company posted an ordinary profit of 2.6bn yen, a year-on-year gain of 14.8bn yen. This was despite the company booking a one-time charge for reorganisation costs stemming from the integration of its domestic consolidated sales companies that was completed on 1 July, 2007 and despite an increase in income taxes.
Global retail market unit sales of vehicles in the first quarter rose 14% to 334,000 vehicles. In Japan MMC sold 46,000 vehicles, an 11% drop, led by minicars. North American sales were up 22% to 52,000 and European sales of 80,000 were up 12% helped by “robust” sales in Russia and a doubling in Ukraine.
Russia recently became a stand-alone region reporting direct to Japan, rather than part of Mitsubishi Motors Europe.
Asia and other region sales rose 22% to 156,000 vehicles due to higher unit sales 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.
