Mitsubishi Motors Corporation (MMC) today announced its sales and financial results for the first half of the 2013 fiscal year (FY) ending March 31, 2014 along with full-year forecast revisions.
1. Performance overview
MMC posted consolidated net sales of 929.0 billion yen for the first half of fiscal 2013 (April 1 through September 30, 2013), an 8% or 69.0 billion yen increase over the same period last fiscal year.
MMC posted an operating income of 50.8 billion yen, an increase of 65% or 20.0 billion yen over the same period last fiscal year. Negative factors such as increases in sales expenses including advertising costs and worsening of the model mix among others were overcome by steadily progressing reductions in material and other costs in addition to favorable foreign exchange rates.
Along with the increased non-operating income from factors including foreign exchange gains MMC posted an ordinary income of 61.0 billion yen, an increase of 93% or 29.4 billion yen over the first half of FY2012. Net income for the term came to 46.7 billion yen, an increase of 55% or 16.6 billion yen year-on-year.
2. Sales volume (Retail)
Global retail sales volume for the first half of fiscal year 2013 totaled 499,000 units, a 4% or 21,000-unit increase over the same period last fiscal year. Sales volumes by region were as follows:
Japan: Sales volume totaled 66,000 units for the term, a 5% or 3,000-unit increase year-on-year. Despite a year-on-year downturn in registered vehicles, the strong start of the June-released all-new eK Wagon and eK Custom minicars contributed to the increase.
North America: Sales volume amounted to 45,000 units for the term, a 3% or 2,000-unit increase year-on-year. In the United States, sales of the Outlander Sport (RVR or ASX in some markets) core model increased over the same period last year and the new Outlander introduced in June contributed to offsetting last year's production termination and subsequent drop in sales of the Galant, resulting in a year-on-year result being on par with the same period last year. Year-on-year sales volume increases in Canada and Mexico contributed the region's overall sales volume increase.
Europe: Sales volume totaled 91,000 units, a 1% or 1,000-unit increase year-on-year. Despite a decrease in total automobile demand and subsequent drop in sales in Russia, and a decrease in automobile demand in western Europe, the region's year-on-year sales were boosted by factors including positive effects of the introduction of the all-new Outlander and Space Star/Mirage models in western Europe.
Asia & Other Regions: Sales volume came to 297,000 units, a 6% or 15,000-unit increase year-on-year. The ASEAN region showed a drop in year-on-year sales volume as brisk sales in the Philippines and Indonesia were not able to overcome a drop in sales in Thailand, where factors such as the government's "first-car buyer" program came to an end at the end of last year, negatively affecting sales in the country. On the other hand all other areas outside of the ASEAN region (North Asia, Australia & New Zealand, Latin America, the Middle East & Africa) achieved year-on-year increases which contributed to the overall increase for the region.
3. Revision to fiscal 2013 full-year forecasts
MMC has decided to revise the sales volume, net sales, ordinary income, and net income figures in its fiscal 2013 full-year (April 1, 2013 through March 31, 2014) consolidated earnings forecasts announced on April 25, 2013. These changes were made based on the 1H FY2013 operating results and the consideration of other factors, including the current global economic situation and market trends.
