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February 1, 2019

Mitsubishi sees difficult business environment continuing

Mitsubishi Motors Corporation (MMC) has announced financials for the nine-month period to 31 December, 2018.

By Olly Wehring

Mitsubishi Motors Corporation (MMC) has announced financials for the nine-month period to 31 December, 2018.   Sales rose 18.2% to JPY1,794.1bn. Operating profit rose from JPY64.6bn to JPY85bn, an operating margin of 4.7%. Net income was 69.2bn yen.

Global sales volume for the nine months increased 15% to 894,000 units.   ASEAN sales increased 27% year-on-year to 235,000 units, primarily driven by the strong demand for the Xpander crossover MPV.   Sales in Europe increased 29% to 168,000 units, driven by the continued robust performance of the Eclipse Cross and Outlander PHEV in western Europe and the locally produced Outlander in Russia.   Sales volumes increased in all regions. Fiscal year consolidated financial forecasts remain unchanged.

Osamu Masuko, chairman and CEO, said: "Up until the third quarter, we were affected by the negative movements in emerging and commodity currencies, in addition to repeated natural disasters in Japan. Even in these circumstances, we were able to achieve a year-on-year increase as a whole and secure a level close to our plan in terms of sales volume, net sales and operating profit.

"In addition to slowing demand in major markets such as the US and China, we are continuously facing a situation of unstable exchange rates. We will be relentless with our continuing efforts to reduce costs, while focusing first and foremost on achieving our full-year target.

"We are not optimistic that this difficult business environment will be temporary, so as a starting point we intend to redefine our "Vision for Mitsubishi Motors" to be a strategy to survive and steadily increase profitability in a sustainable manner by utilising alliances on our scale."

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