Mitsubishi Motors Corporation (MMC) has announced a large improvement in operating profit for the six months ending 30 September 2017, and reaffirmed its full year outlook for the current fiscal year to 31 March 2018.
The company reported sharply increased operating profit of JPY44.2bn (US$386m), up from a loss of JPY31.6bn, on sales up 9.6% year on year to JPY947.7bn and an operating margin up from -3.7% to 4.7%. Net income of JPY48.4bn was a huge improvement on last year's fiscal first half net loss of JPY219.6bn.
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Results in 2016 were impacted by costs associated with the fuel economy 'misstatement' scandal.
Global sales volume in the first half rose 14% to 498,000 units.
The increase was driven by higher sales in Japan, up 48% to 43,000 units, following the post-scandal resumption of Kei-car sales in 2016, and the contribution from the newly launched Delica D:5 Active Gear model.
China sales rose 87% to 58,000 units due to demand for the locally assembled Outlander. ASEAN sales increased 15% to 113,000 units driven mainly by strong orders for the locally built Triton pickup truck and Pajero Sport in Thailand.
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By GlobalDataSales in Oceania and recovering demand in Russia also contributed to growth.
Increased sales in these markets offset slower growth in North America, where sales rose just 1% to 72,000 units, and a 1% decline in unit sales to 89,000 units in Europe.
MMC reaffirmed its previous (May) full year financial forecast for fiscal 2017.
Osamu Masuko, chief executive officer, said: "Mitsubishi Motors will continue to adapt to changing market conditions, and will take any necessary measures to ensure the delivery of our full year plan."
