Mitsubishi Motors Announces Results for Third Quarter Fiscal 2005.

Tokyo, Japan, Feb 9, 2006 - (JCN Newswire) - Mitsubishi Motors Corporation (MMC) today announced its financial results for the first three quarters of the fiscal year ending March 31, 2006.

Performance overview

Mitsubishi Motors consolidated net sales in the first three quarters of fiscal 2005 (April 1 through December 31, 2005) totaled 1,529.6 billion yen, down 88.3 billion yen over the same period last year (1,617.9 billion yen). The decrease reflects lower OEM supply volumes in North America and Europe that were not offset by an increase in revenues in Japan driven by the introduction of a new model.

The company posted an operating loss of 18.2 billion yen, an improvement of 81.5 billion yen over the same period last year. Factors offsetting the weaker revenue and contributing to this im-provement include higher retail unit volume and higher margin model mix and a weaker yen. These were complemented by a number of favorable factors, including: lower depreciation costs as a result of asset impairment charges taken in the U.S. and Australia during the previous fiscal year; non-recurrence of one time charges resulting from the sales of sales-finance receivables in the U.S. financial services subsidiary; lower sales promotion costs, mainly advertising, in the U.S. and Europe; and lower warranty expenses mainly in Japan.

Mitsubishi Motors posted an ordinary loss of 33.8 billion yen, a year-on-year improvement of 110.3 billion yen, and a net loss of 68.1 billion yen, an improvement of 160.1 billion yen. The smaller ordinary loss stems mainly from improvement in income from equity method affiliates and from the non-recurrence of costs associated with the issue of new shares in the previous fiscal year.

Sales volume

Global market sales of Mitsubishi Motors vehicles in the first three quarters of the fiscal year totaled 985,000 vehicles, an increase of 34,000 on the 951,000 sold in the same period last year.

In Japan, MMC sold 163,000 vehicles, a year-on-year increase of 17,000 that reflected strong sales of the new Outlander model introduced in October 2005.

In North America, the company sold 121,000 vehicles, 10,000 fewer than the same period last year. Sales grew steadily in Mexico and Puerto Rico but failed to counter the impact of changes in the U.S. market environment following sharp rises in gasoline prices and the ongoing cut back in fleet sales that is one of the measures in the company's drive to normalize its sales activities.

In Europe, Mitsubishi Motors sold 195,000 vehicles, a year-on-year increase of 24,000 driven by robust sales in markets such as Russia, Germany, and the U.K.

In Asia and other markets, MMC sold 506,000 vehicles, an increase of 3,000 over the same period last year. Slower sales in markets such as China were offset by firm growth mainly in Latin America, the Middle East, and Africa.

Progress in FY2005 business plan

1) Financial results

- On an individual quarter basis, net sales have increased each quarter: 485.8 billion yen in the first quarter, 505.5 billion yen in the second, and 538.3 billion yen in the third.

- Operating, ordinary, and net losses were all at a level that should enable the full-year forecasts to be achieved. For the third quarter itself, ordinary and net losses were reduced substantially over the first and second quarters and operating income moved into the black.

2) Sales volume and outlook

- Japan

Sales of the new Outlander and i models launched in the second half of FY2005 are both above target and the company anticipates additional increases in sales volume in the seasonally high volume fourth quarter.

- North America

Impacted in part by the sharp rises in gasoline prices, sales volume is taking time to recover. In January, the company implemented changes to strengthen the management of its U.S. manufacturing and sales unit Mitsubishi Motors North America, Inc. MMNA is also bolstering its marketing and sales capabilities through a comprehensive reappraisal of its sales policies.

- Europe

Remaining robust in Russia, Germany, and the U.K., sales have also started to recover in Italy, which had been lagging behind. MMC looks to further boost sales in the European market with the launch of the new L200 pickup truck and new Colt CZC coupe-cabriolet in the spring.

- Asia and other regions

Sales in Latin America, the Middle East, Africa, and the ASEAN region were robust across the board. While sales were slow in some regions including North Asia and Australia, the company is making a concerted effort to raise levels overall. The strong start in sales shown by the new Zinger MPV launched in Taiwan, a major North Asian market, in December provides grounds for encouragement.

FY2005 full-year forecasts

Given the financial results as they stand through the first three quarters of fiscal 2005 and the progress made toward the fiscal 2005 business plan, Mitsubishi Motors considers the third quarter performance decent, and that the announced full-year forecasts are within reach. As to full-year sales volume, the forecast incorporates sizeable volume in the fourth quarter, and there is uncertainty surrounding the global market, thus Mitsubishi Motors believes leaving full-year forecasts unchanged to be appropriate. The entire company however will put in all efforts to exceeding the forecasted targets.

Note on forward-looking statements

All statements herein, other than historical facts, contain forward-looking statements and are based on our 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 changes

Potential risks and uncertainties are not limited to the above and MMC 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: 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.

Source: Mitsubishi Motors Corporation

Contact:

Mitsubishi Motors Media Center
https://media.mitsubishi-motors.com/index.php

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