Mitsubishi Motors Reports full-year Financial Results for FY2017 and Issues FY2018 Guidance

Automotive Press Releases Monday May 21, 2018 10:39
Bangkok--21 May--Mitsubishi Motors

Mitsubishi Motors Corporation (MMC) recently announced full-year financial results for Fiscal Year 2017 ended March 31, 2018, and issued its initial forecast for Fiscal Year 2018 ended March 31, 2019. Osamu Masuko, Chief Executive Officer of Mitsubishi Motors, said: "In FY2017, the first year of the mid-term business plan (MTP), we were able to make a good start, achieving the targets which were even revised upward during the fiscal year. I also find it very encouraging that our new products, XPANDER and Eclipse Cross have been launched successfully."

1. FY2017 full-year Financial Results Highlights

Mitsubishi Motors reported net sales up 15% year-on-year to 2.19 trillion yen for Fiscal Year 2017. Operating profit rose sharply to 98.2 billion yen, representing an operating margin of 4.5%, compared with an operating profit of 5.1 billion yen in the same period of Fiscal Year 2016. The company generated net income of 107.6 billion yen for the latest 12-month period, reversing a net loss of 198.5 billion yen in the prior fiscal year.

2. Global sales performance
Global sales volume for Fiscal Year 2017 increased 19% year-on-year to 1,101,000 units.
ASEAN sales increased by 33% to 275,000 units, driven by orders for pick-up trucks in Thailand and the strong performance of the new XPANDER, launched in Indonesia last September.

In China, sales rose 55% year-on-year to 136,000 units due to demand for the localized Outlander. Sales in Japan increased 23% year-on-year to 98,000 units. The growth was driven by encouraging demand for Kei car models including the "eK Wagon" and "eK Space", as well as for the Delica D:5 and other "Active Gear" series.

The XPANDER is part of a product offensive at Mitsubishi Motors, which also includes the new Eclipse Cross compact SUV. Initial Sales of the Eclipse Cross, launched last year in Europe, are being followed by sales in other important markets including Oceania, North America and Japan.

3. Fiscal year 2018 forecast

MMC forecast that global sales in Fiscal Year 2018 would increase by 14% year-on-year to 1.25 million units. The Eclipse Cross and XPANDER, which we launched last fiscal year, will contribute to the volume growth in this fiscal year. Regionally, our growth will be driven strongly by ASEAN, and by China in which production capacity will be increased by our local joint venture and the dealer network will be enhanced. The sales recovery in Japan will also support the growth.

MMC's financial forecast for Fiscal Year 2018 is following; Net sales are projected to rise 9% year-on-year to 2.40 trillion yen. Based on the exchange rate assumptions that reflect severer market environment than the last year, MMC expects to achieve operating profit of 110.0 billion yen, representing 4.6% operating margin. Net income is forecast to be 110.0 billion yen.

Osamu Masuko, CEO, said: "To reassure that we are on the right track in continuing reform initiatives to 'rebuild credibility,' FY2018, the second year of the MTP, is a very important year. While making aggressive investments continuously to 'establish a foundation for profitable and sustainable growth,' we will use our best endeavors to 'expand the size' and 'improve COP margin,' all of which are the goals we made this announcement."

Note on forward-looking statements

All statements herein, other than historical facts, contain forward-looking statements and are based on Mitsubishi Motors Corporation'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 Mitsubishi Motors Corporation 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 Corporation, you are requested to make a final investment decision at your own risk, taking the foregoing into consideration. Please note that neither Mitsubishi Motors Corporation nor any third party providing information shall be responsible for any damage you may suffer due to investment in Mitsubishi Motors Corporation based on the information shown in this news release.

About Mitsubishi Motors Thailand (MMTh)

Mitsubishi Motors (Thailand) Co., Ltd., the largest plant in the MMC group and an export hub to more than 120 countries, is one of Thailand's leading automotive manufacturers committed to produce and sell a range of vehicles that are eco-friendly, high in quality, performance, safety, comfort, technology and customer satisfaction. In 2015 MMTh celebrated a total production of four million units. MMTh's current range of vehicles includes the Mitsubishi Triton pickup truck, Mitsubishi Pajero Sport PPV, Mitsubishi Attrage and Mitsubishi Mirage city cars. To ensure the highest quality, MMTh uses its proving ground in Sriracha, Chonburi to assess products from design and prototype stages to pre-production and commercialization. This ensures customers take delivery of vehicles that are second-to-none in all aspects of quality.

  • Please contact Mitsubishi dealers nationwide for more information and test driving, or contact Mitsubishi Call Center Tel. 02-079-9500 every day at 8:30 – 17:00 hrs.
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