Mitsubishi Motors Corporation (MMC) on Friday announced a new business plan intended to return the automaker to profitability in fiscal 2006 (net income of 8 billion yen) and to establish “sustainable profitability” in fiscal 2007 (net income of 41 billion yen).
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New sales plans have been drawn up for each region based on current market trends “to set realistic and achievable targets and eliminate all foreseeable downward risks,” MMC said in a statement.
The new plan forecasts fiscal 2004 sales volume of 1,337,000 vehicles, a decrease of 190,000 on the previous year. This is 63,000 less than the forecast of 1,400,000 vehicles made with the half-year results in November 2004.
MMC expects consolidated net sales of 2,035 billion yen, 484.4 billion yen down on the previous year, and an operating loss of 132 billion yen, 35.1 billion yen worse than the previous year.
Ordinary loss is forecast at 197 billion yen, 86.7 billion yen worse than the previous year, and net loss for the term is forecast at 472 billion yen, 256.6 billion yen worse than the previous year.
The net loss forecast is significantly worse than the 240 billion yen given in November 2004. This is due mainly to extraordinary losses asset impairment accounting costs subsequent to revised sales volumes in the US and Australia.
