Mitsubishi Motors Reports First-half Financial Results for Fiscal 2017
TOKYO, Nov, 07 2017 - (JCN Newswire) - Mitsubishi Motors Corporation (MMC) today announced financial results for the six months ending September 30, 2017, and reaffirmed its full-year outlook for the current fiscal year.
The company reported sharply increased operating profits of 44.2 billion yen on revenues that rose by 9.6% to 947.7 billion yen for the first half of fiscal 2017, representing an operating margin of 4.7%. The company also reported net income of 48.4 billion yen for the latest half-year, reversing a net loss of 219.6 billion yen in the prior-year period.
Global sales volume in the first half of fiscal 2017 increased 14% year-on-year to 498,000 units.
The increase was driven by higher sales in Japan, up 48% to 43,000 units following the resumption of Kei-car sales in 2016 and the contribution from Delica D:5 "Active Gear".
China sales rose 87% to 58,000 units due to demand for the localized Outlander. ASEAN sales increased 15% to 113,000 units driven mainly by strong orders for the Triton pick-up and Pajero Sport in Thailand. Sales in Oceania and recovering demand in Russia also contributed to the growth.
Increased sales in these markets offset slower growth in North America, where sales rose 1% to 72,000 units, and a 1% decline in unit sales to 89,000 units in Europe.
Financial Outlook for Fiscal Year 2017
MMC reaffirmed its previous full year financial forecast for fiscal 2017, which was submitted to the Tokyo Stock Exchange in May.
Mr. Masuko 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. The board of directors approved today a half-year dividend payment of 7 yen per share, as first announced at the beginning of the fiscal year."
New Mid-Term Plan 'DRIVE FOR GROWTH' (FY2017-2019)
Publication of the first half results follows the announcement by Mitsubishi Motors in October of its new three-year strategic plan, Drive for Growth. The plan is targeting a 40% increase in annual unit sales to 1.3 million vehicles and a 30% rise in revenue to 2.5 trillion yen by the end of Fiscal Year 2019. As part of the plan, the company will increase annual capital expenditure by 60% to 137 billion yen, equivalent to 5.5% of sales, and lift R&D expenses by 50% to 133 billion yen in Fiscal Year 2019.
Under its mid-term plan, Mitsubishi Motors is refreshing its product line-up. The company is launching six all-new products, with signs of encouraging demand for the first two new models in the renewal program.
40,000 orders have been placed for the XPANDER compact MPV in Indonesia, where production began on schedule in October. The XPANDER will be exported to the Philippines and Thailand from 2018, contributing to an increased brand and sales presence in ASEAN.
Exports of the all-new Eclipse Cross SUV have also begun to Europe, to be followed by 80 markets including Australia, North America, and Japan.
Alongside the Drive for Growth strategic plan, Mitsubishi Motors has unveiled a new marketing tag-line, Drive your Ambition, which will be launched in all markets as part of a major overhaul of the company's brand-marketing activities.
Mr. Masuko added: "During this three-year period, we will rebuild trust in our company as our highest priority, while also successfully launching new vehicles and maintaining our V-shaped financial recovery. We aim to continue the momentum achieved in for the remainder of the year."
About Mitsubishi Motors
Mitsubishi Motors Corporation is the sixth largest automaker in Japan and the sixteenth largest in the world. It is part of the Mitsubishi keiretsu, formerly the biggest industrial group in Japan, and was formed in 1970 from the automotive division of Mitsubishi Heavy Industries. From October 2016, Mitsubishi is one-third owned by Nissan, and a part of the Renault - Nissan - Mitsubishi Alliance. For more information, please visit www.mitsubishi-motors.com/en/index.html.
Public Relations Department
Source: Mitsubishi Motors
Copyright ©2018 JCN Newswire. All rights reserved. A division of Japan Corporate News Network.