Once considered an also ran, Mitsubishi Motor Co has found new life on the heels of its alliance with Renault and Nissan.
Mitsubishi Motors reported net sales were up 15% year-on-year to 2.19 trillion yen, or $20.1 billion, for Fiscal Year 2017, ending March 31, 2018. Operating profit rose sharply to 98.2 billion yen, or $899.5 million, representing an operating margin of 4.5%, compared with an operating profit of 5.1 billion yen, or $45.8 million, in the same period of Fiscal Year 2016.
The company generated net income of 107.6 billion yen, $988.3 million, for the latest 12-month period, reversing a net loss of 198.5 billion yen, or $1.8 billion, in the prior fiscal year, the company reported.
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.”
(Nissan’s Fred Diaz to run U.S. operations for Mitsubishi. Click Here for the story.)
Mitsubishi’s global sales volume for Fiscal Year 2017 increased 19% year-on-year to 1,101,000 units.
The company’s sales in Southeast Asia increased by 33% to 275,000 units, driven by orders for pick-up trucks in Thailand and the strong performance of the new Xpander MPV, launched in Indonesia last September.
In China, sales rose 55% year-on-year to 136,000 units due to demand for the localized Outlander.
(Click Here for more about Renault-Nissan-Mitsubishi taking the global sales lead.)
Sales in Japan also 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.
MMC predicted global sales in the current fiscal year, Fiscal Year 2018, would increase by 14% year-on-year to 1.25 million units. The Eclipse Cross and Xpander, which were launched last fiscal year, will contribute to the volume growth in this fiscal year.
Regionally, 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.
(To see more about Mitsubishi’s plans for 2018, Click Here.)
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.