Mitsubishi Motors Corporation announces Fiscal 2014 First Half Operating Results and Revises Full-year Forecasts

Mitsubishi Motors Corporation (MMC) today announced its sales and financial results for the first half of the 2014 fiscal year (FY) ending March 31, 2015 along with full-year forecast revisions.

[ Consolidated Summary (PDF: 1pages 58KB) ]
[ Financial Statements (PDF: 13pages 112KB) ]
[ Presentation (PDF: 20pages 2.2MB) ]
[ Additional Information Material (PDF: 2pages 133KB) ]

MMC posted consolidated net sales of 1,035.1 billion yen for the first half of fiscal 2014 (April 1 through September 30, 2014), an 11% or 106.1 billion yen increase over the same period last fiscal year.

MMC posted an operating income of 62.7 billion yen, an increase of 23% or 11.9 billion yen over the same period last fiscal year. Improvements in the model mix, cost reduction efforts and favorable foreign exchange rates contributed to the increase.

Along with the increased non-operating income from factors including foreign exchange gains and equity in earnings of affiliates, MMC posted an ordinary income of 73.6 billion yen, an increase of 21% or 12.6 billion yen over the first half of FY2013. Net income for the term came to 60.9 billion yen, an increase of 30% or 14.2 billion yen year-on-year.

Global retail sales volume for the first half of fiscal year 2014 totaled 521,000 units, a 4% or 22,000-unit increase over the same period last fiscal year. Sales volumes by region were as follows:

Japan: Sales volume totaled 57,000 units for the term, a 14% or 9,000-unit decrease year-on-year. Lingering effects from tax increase contributed to the overall decrease.

North America: In the United States, where overall market demand is strong, sales of the Outlander Sport (RVR or ASX in some markets) core model increased over the same period last year and sales of the new Outlander and Mirage (Space Star in some markets) which were launched last year also increased, contributing to an overall regional sales volume of 57,000 units for the term, a 27% or 12,000-unit increase year-on-year.

Europe: Sales volume totaled 104,000 units, a 15% or 13,000-unit increase year-on-year. Despite a lackluster market stemming from an unstable political situation in Russia, which posted a decrease in year-on-year sales, the region’s year-on-year sales were boosted by factors including positive sales in western Europe, due mainly to the expansion of countries where the Outlander PHEV is sold, resulting in an overall regional increase for the term.

Asia: Sales volume came to 167,000 units, a 2% or 4,000-unit increase year-on-year. Recovery in overall market demand for Thailand remained sluggish and the market continued to be stagnant, leading to a drop in year-on-year sales there; however this was countered by a large increase in sales in China, mainly stemming from GAC Mitsubishi Motors Corporation.

Other Regions: Sales volume totaled 136,000 units, a year-on-year increase of 1% or 2,000 units. Despite year-on-year sales decreases in Australia and New Zealand, sales increased in the Middle East, Africa, and Latin America which resulted in an overall increase in sales for the region.

MMC has decided to revise the sales volume and net sales figures in its fiscal 2014 full-year (April 1, 2014 through March 31, 2015) consolidated earnings forecasts. These changes were made based on the 1H FY2014 operating results and the consideration of other factors, including the current global economic situation and market trends. The revision is outlined below.