Mitsubishi Motors (MMC) has posted its first first-half net profit since fiscal year 2002.
Go deeper with GlobalData
Discover B2B Marketing That Performs
Combine business intelligence and editorial excellence to reach engaged professionals across 36 leading media platforms.
The JPY12.8bn figure was a year-on-year improvement of 18.4bn yen due to an increase in ordinary income and to the elimination of such extraordinary losses as reorganisation costs incurred in the integration of domestic consolidated sales companies, which were booked in the previous fiscal year.
Operating income of JPY25.4bn was up 35% or JPY6.6bn year on year despite sharp increases in the cost of raw materials and the impact of the stronger yen.
Factors contributing to the improvement include a more profitable model mix as well as reductions in selling and marketing as well as other costs, MMC said.
Ordinary income rose JPY14.3bn to JPY20.9bn due to the higher operating income, favourable changes in the balance of interest paid and received and improved gains in foreign exchange transactions.
US Tariffs are shifting - will you react or anticipate?
Don’t let policy changes catch you off guard. Stay proactive with real-time data and expert analysis.
By GlobalDataConsolidated net sales of JPY1,214bn were down 8% due to lower unit sales and the impact of the stronger yen, though partly countered by increased revenues from a more profitable model mix.
Global retail unit sales fell 13% to 602,000 in the first half.
Japan sales fell 17% to 83,000 vehicles due to a lack of new models.
North America sales fell 22% to 71,000 vehicles as rises in Canada and Mexico were offset by a fall in consumer confidence and the credit crunch in the United States.
Higher sales in Russia boosted Europe sales slightly to 168,000.
Asia and other region sales fell 15% due to the ending of the supply of parts for local vehicle assembly to Proton in Malaysia and to slower sales in other markets.
