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Mitsubishi says 'V-shaped recovery' on track in Q1

By Graeme Roberts | 25 July 2017

Mitsubishi Motors Corporation (MMC) booked operating profit of JPY20.6bn on sales up 2.8% year on year to JPY440.9bn yen in the first quarter of fiscal 2017/18, achieving an operating margin of 4.7%. Net income rose to JPY23bn versus a loss of JPY129.7bn in Q1 2016/17.

Global units sales rose 9% to 241,000 cars after the resumption of kei car [minivehicle] sales in Japan which had been suspended in the first quarter of fiscal 2016/17 after the fuel economy misstatement scandal. The boost also reflected strong growth in China following the launch of locally produced Outlander SUVs. Sales also increased in the ASEAN region, led by demand for SUVs and pick-up trucks.
 
CEO Osamu Masuko said: "Fiscal year 2017 is off to a solid start. We are seeing the benefits of increased operational rigour and efficiency, along with encouraging sales in key markets.
 
"Our V-shaped recovery is continuing, paving the way for sustainable growth. Synergies from the [majority shareholder] Nissan Alliance are also on track, making a further contribution to the company's overall performance."

MMC Fiscal 2017/18 Q1 results

Q1 Apr-Jun 2017Full year Apr-Mar
Retail volume (units '000s)2212419926102911
Net sales (JPY bn)428.7440.931906.620005
Operating profit4.620.63465.1701268
Operating margin1.14.73.60.33.53.2
Net income-129.723null-198.5680

MMC reaffirmed full year guidance for fiscal 2017, as submitted to the Tokyo Stock Exchange this May.

MMC FY 2017/18 forecast

Full year Apr 2017-March 2018 forecast
Retail volume (units '000)926102911
Net sales (JPY bn)1909.620005
Operating profit5.1701268
Operating margin0.33.53.2
Net income-198.5680