Industry News
Mitsubishi Motors halves first-quarter operating loss
10th August 2006
Mitsubishi Motors has reported consolidated net sales of 483.9 billion yen for the first quarter of fiscal 2006 (April 1 through June 30, 2006), down slightly from 485.8 billion yen a year earlier due mainly from a drop in sales volume in the company's Asia & Other region markets, which was not completely offset by increases in Japan, North America and Europe.
Global market sales of Mitsubishi Motors vehicles in the first quarter of fiscal 2006 totaled 292,000 vehicles, 34,000 fewer than the 326,000 sold in the same period last year.
MMC sold 52,000 vehicles in Japan, a year-on-year increase of 4,000, 42,000 in North America, (+1,000 year on year), and 71,000 in Europe, up 5,000 due largely to increased volume in Russia and Ukraine. In markets in its ‘Asia & Other’ region, MMC sold 127,000 vehicles, 44,000 fewer than in the same period last year, with reduced demand in Taiwan and ASEAN markets.
The company reported an operating loss of 6.8 billion yen, an improvement of 7.0 billion yen over the same period last year. Factors contributing to this improvement and helping to offset lower net sales included: the weaker yen, reductions in US advertising expenditure, and an improvement in profitability at the company's US financial services subsidiary.
Mitsubishi Motors also achieved reductions in the size of its ordinary and net losses, reporting an ordinary loss of 12.2 billion yen, a year-on-year improvement of 7.8 billion yen, and a net loss of 15.1 billion yen, an improvement of 6.5 billion yen.
News Headlines
