Mitsubishi Motors Announces FY2006 First Half Financial Results and Forecasts for the Full Year.Tokyo, Japan, Oct 30, 2006 - (JCN JCN Japan Corporate News JCN Journal of Cognitive Neuroscience JCN Journal of Cardiovascular Nursing JCN Journal of Christian Nursing JCN Job Control Number JCN Journal of Child Neurology JCN joint communications network (US DoD) Newswire) - Mitsubishi Motors Mitsubishi Motors Corporation (三菱自動車工業株式会社 Corporation today announced first-half results for fiscal year 2006, ending March 31, 2007, and outlined its forecasts for the full year. The Company posted consolidated net sales Net Sales The amount a seller receives from the buyer after costs associated with the sale are deducted. Notes: This amount is calculated by subtracting the following items from gross sales: merchandise returned for credit, allowances for damaged or missing goods, freight of 1,005.4 billion yen for the first half of fiscal year 2006 (April 1 through September 30, 2006), an increase of 14.1 billion yen over the same period last year (991.3 billion). This increase was partially due to exchange rates despite lower sales volume in Asia and other regions and reduced OEM (Original Equipment Manufacturer) The rebranding of equipment and selling it. The term initially referred to the company that made the products (the "original" manufacturer), but eventually became widely used to refer to the organization that buys the products and supply volume in non-domestic markets. Mitsubishi Motors posted an operating loss operating loss The excess of operating expenses over revenue. As with operating income, operating losses exclude revenues and expenses from operations that are not considered a regular part of the business. Also called deficit. Compare operating income. of 5.5 billion yen, an improvement of 14.3 billion yen over the same period last year despite lower global sales volume. Factors contributing to the improvement were mainly improved sales and model profitability mix in Japan and North America North America, third largest continent (1990 est. pop. 365,000,000), c.9,400,000 sq mi (24,346,000 sq km), the northern of the two continents of the Western Hemisphere. , improvement of earnings in the U.S. financial service operation, and effects of a weaker yen. The Company posted an ordinary loss of 13.2 billion yen, a year-on-year improvement of 20.4 billion yen, and a net loss of 16.1 billion yen, a year-on-year improvement of 47.7 billion yen. The improvement in net loss resulted from lower asset impairment Impairment 1. A reduction in a company's stated capital. 2. The total capital that is less than the par value of the company's capital stock. Notes: 1. This is usually reduced because of poorly estimated losses or gains. 2. charges taken in Japan compared to that taken in fiscal year 2005, the absence of restructuring charges restructuring charge The expense of reorganizing a company's operations. A restructuring charge is an infrequent expense that generally results from asset writedowns or facility closings. booked last year, and extraordinary gains from the dissolution Act or process of dissolving; termination; winding up. In this sense it is frequently used in the phrase dissolution of a partnership. The dissolution of a contract is its Rescission by the parties themselves or by a court that nullifies its binding force and reinstates each of a special purpose entity related to monetization Monetization The securitization of the gross revenues of a contract. of real estate assets in Japan. Global retail sales volume in the first half of fiscal year 2006 totaled 599,000 units, a reduction of 60,000 compared to 659,000 in the same period last year. Despite falling demand in Japan, Mitsubishi Motors sales volume grew 6,000 vehicles to 114,000. Seventeen consecutive months of year-on-year increases (since May 2005) underscore The underscore character (_) is often used to make file, field and variable names more readable when blank spaces are not allowed. For example, NOVEL_1A.DOC, FIRST_NAME and Start_Routine. (character) underscore - _, ASCII 95. this achievement, showing steady growth. In North America, the company's policy to strengthen the dealers' sales capabilities is gradually bearing fruit. Volume in the region grew 3,000 vehicles to 84,000, the first half fiscal year period of year-on-year growth since the first half of fiscal 2002 (eight periods). In Europe, volume in Germany, the UK and other markets fell slightly year-on-year. However, in addition to continued robust sales in Russia, sales volume doubled in the Ukraine, bringing the total for the region to 142,000 vehicles, 11,000 more than the same period last year. In Asia and other regions, markets in Latin America Latin America, the Spanish-speaking, Portuguese-speaking, and French-speaking countries (except Canada) of North America, South America, Central America, and the West Indies. , the Middle East, and Africa showed increased sales volume. However, sales fell in Indonesia on high fuel prices due to elimination of government subsidies and tighter credit conditions. Sales also fell in Malaysia, where shipments of production parts and components to Proton Holdings Berhad were reduced, and in Taiwan where overall demand fell. Overall volume on the whole was down 80,000 vehicles to 259,000. Full-year forecast Despite severe market conditions, The first half of fiscal year 2006 showed year-on-year improvement in net sales and distinct improvement in earnings. Although targets for net sales and unit sales unit sales Sales measured in terms of physical units rather than dollars. Unit sales data are often used by financial analysts when evaluating the health of a company. volume did not meet the figures announced at the beginning of the financial year, losses were reduced in excess of targets. While the sales climate is expected to remain difficult in the coming period, by steadily executing measures in the second half, the company will strive to achieve net sales and earnings goals as announced on April 27, 2006. However, as a result of reviewing the unit sales volume targets by region, the company has opted to revise its fiscal 2006 sales volume to 1,322,000 vehicles, a reduction of 86,000 compared to the April 27th figure. In Japan, reflecting the fact that unit sales volume was below forecast in the first half, the company has opted to revise volume to 281,000 vehicles, a reduction of 21,000 compared to the April 27th figure. In North America, the company has revised volume up 7,000 vehicles to 188,000 reflecting the effect of new model launches in the second half. Sales in Europe's growth markets are expected to grow as they did in the first half; the company has revised volume up 9,000 vehicles to 280,000 for the region. On the other hand, in Asia and other regions, the company has revised volume downward 81,000 vehicles to 573,000 reflecting the severe environment and uncertain outlook for markets in the region. Operational initiatives for the second half of FY2006 (by region) 1) Japan - Introduce the fully redesigned Pajero and DelicaD:5, as well non-turbo versions of "i" - Increase dealer traffic through a new advertising campaign - Strengthen sales capabilities together with dealers - Build a new organizational structure  This article has no lead section.To comply with Wikipedia's lead section guidelines, one should be written. , continue revamping the sales operation 2) North America - Increase buyer appeal and sales through introduction of the new Outlander and Lancer models - Reinforce sales capabilities via dealer training - Effective advertising focusing on Mitsubishi's 25 years in the U.S. market - Enhance sales through effective use of financial service operations - Improve productivity at the Illinois plant 3) Europe - Strengthen lineup A criminal investigation technique in which the police arrange a number of individuals in a row before a witness to a crime and ask the witness to identify which, if any, of the individuals committed the crime. through consecutive launch of new SUV models (new L200, Pajero, Outlander) - Expand sales in Russia and the Ukraine 4) Asia and other regions - China: Expand sales of Mitsubishi brand vehicles after the recent equity investment in South East (Fujian) Motor Co., Ltd and reinforce the lineup of vehicles exported from Japan - Thailand: Secure stable profitability through expansion of Triton/L200 1-ton pickup exports - Latin America, the Middle East and Africa: Sustain momentum through introduction of the new Pajero - Australia: Launch 3 new models (Triton, Pajero, Outlander) * Note on forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. All statements herein, other than historical facts, contain forward-looking statements and are based on MMC'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 presentation; - fluctuations in interest rates, exchange rates and oil prices; - changes in laws, regulations and government policies; - regional and/or global socioeconomic so·ci·o·ec·o·nom·ic adj. Of or involving both social and economic factors. socioeconomic Adjective of or involving economic and social factors Adj. 1. changes Potential risks and uncertainties are not limited to the above and MMC See MultiMediaCard and Microsoft Management Console. is not under any obligation to update the information in this presentation to reflect any developments or events in the future. About Mitsubishi Motors Corporation Mitsubishi Motors Corporation (TSE See Tokyo Stock Exchange. TSE 1. See Tokyo Stock Exchange (TSE). 2. See Toronto Stock Exchange (TSE). : 7211) was established in 1970 and is one of the few automobile companies in the world that produces a full line of automotive products ranging from 660-cc mini cars and passenger cars to commercial vehicles and heavy-duty trucks and buses. The company also operates consumer financing services and provides this to its customer base. For more information, please visit www.mitsubishi-motors.com. Source: Mitsubishi Motors Corporation Contact: Mitsubishi Motors Corporation Public Relations Department http://www.mitsubishi-motors.com +81-3-6719-2111 Copyright [c] 2006 JCN Newswire. All rights reserved. A division of Japan Corporate News Network K.K. |
|
||||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion