MITSUBISHI MOTORS CORPORATION ANNOUNCES THIRD QUARTER FISCAL 2011 OPERATING RESULTS & FULL-YEAR FORECASTS







Published by Gerald Ferreira Date: February 3, 2012
Categories: Mitsubishi

Tokyo – Mitsubishi Motors Corporation today announced its sales and financial results through the third quarter of the 2011 fiscal year ending March 31, 2012 and its forecasts for the full fiscal year.

Performance overview 

Mitsubishi Motors posted a consolidated net sales of 1,293.1 billion yen for the first three quarters of fiscal 2011 (April 1 through December 31, 2011), a 1 percent or 17.8 billion yen decrease over the same period last fiscal year. The decrease was mainly due to a temporary halt of production in Thailand affected by the massive flooding in the country, as well as the negative impact of further strengthening of the yen. Mitsubishi Motors posted an operating profit of 38.5 billion yen, a 196 percent or 25.5 billion yen increase over the same period last year. Despite the decrease in net sales, the increase was made possible mainly due to improvements in the model mix, together with other factors such as reductions in materials and other costs. Mitsubishi Motors posted an ordinary profit of 28.9 billion yen, a 154% or 17.5 billion yen increase, and posted a net profit of the term of 13.6 billion yen, an improvement of 15.8 billion yen over the same period last year.

Sales volume

Global retail sales volume for the first nine months of the fiscal year totalled 755,000 units, a 5 % or 34,000-unit increase over the same period last year. Sales volume by region were as follows: In Japan, although Mitsubishi Motors saw a year-on-year increase in sales volume for the third quarter by adding models with new fuel-saving technologies such as idling-stop mechanisms to its lineup, cumulative sales for the term came to 103,000 units, a decrease of 13 percent or 16,000 units. In North America, Mitsubishi Motors posted a sales volume of 82,000 units, an increase of 24 percent or 16,000 units over the same period last year. The factors contributing to this substantial increase include higher sales in the United States which stemmed mainly from strong sales of the Outlander Sport (RVR or ASX in some markets). In Europe, Mitsubishi Motors posted a sales volume of 174,000 units, an increase of 10 percent or 16,000 units over the same period last year. This increase can be attributed mainly to Russia, with its continuing recovery in demand producing a great rise in sales volume there, despite year-on-year sales in western European markets remaining unchanged due to increasing uncertainty in the future of European economies seen as decrease in demand. In Asia & Other Regions, Mitsubishi Motors posted a sales volume of 396,000 units, an increase of 5 percent or 18,000 units over the same period last year. This growth was driven mainly from strong sales in ASEAN bloc countries including Thailand and Indonesia along with firm sales in other regions such as Central and South America, led by Brazil.

Fiscal 2011 full-year forecasts

After examining the operating results for the first three quarters and changes in the recent market trends, Mitsubishi Motors has decided to make an adjustment to its overall fiscal 2011 full-year sales volume plan to 1,013,000 units, 19,000 units down from its previous plan announced on October 28, 2011. As to fiscal 2011 full-year forecasts, after carefully reviewing results for the first three quarters of the fiscal year and conceivable fluctuating factors, Mitsubishi Motors has decided to leave its full-year forecasts announced on October 28, 2011 (net sales of 1,820.0 billion yen, operating profit of 50.0 billion yen, ordinary profit of 40.0 billion yen, and net profit of 20.0 billion yen) unchanged.

Note on forward-looking statements

All statements herein, other than historical facts, contain forward-looking statements and are based on MMC's current forecasts, expectations, targets, plans, and evaluations. Any forecasted value is calculated or obtained based on certain assumptions. Forward-looking statements involve inherent risks and uncertainties.

A number of significant factors could therefore cause actual results to differ from those contained in any forward-looking statement. Significant risk factors include:

  • Feasibility of each target and initiative as laid out in this news release;
  • Fluctuations in interest rates, exchange rates and oil prices;
  • Changes in laws, regulations and government policies; and
  • Regional and/or global socioeconomic changes.

Potential risks and uncertainties are not limited to the above and MMC is not under any obligation to update the information in this news release to reflect any developments or events in the future.

If you are interested in investing in Mitsubishi Motors, you are requested to make a final investment decision at your own risk, taking the foregoing into consideration. Please note that neither Mitsubishi Motors nor any third party providing information shall be responsible for any damage you may suffer due to investment in Mitsubishi Motors based on the information shown in this news release.