Improved performance for Mitsubishi

Factors behind the improved performance include a 10 percent growth in global retail sales over fiscal 2006, the commencement of OEM (Original Equipment Manufacturer) vehicle supplies to PSA Peugeot Citroen and favourable yen exchange rates.

Mitsubishi Motors posted an operating profit of 108.6 billion yen, a 2.7-fold increase of 68.4 billion yen over the previous fiscal year.

This significant improvement stems from growth in sales volume and a more profitable model mix in the company's Europe and Asia & Other regions, the aforementioned favourable exchange rate and cost reductions. These together more than offset the higher sales costs accompanying the launch of new models in America and factors including reduced profit at the company's auto financial service operations in America last year.

Mitsubishi Motors posted an ordinary profit of 85.7 billion yen, a 4.6-fold year-on-year increase of 67.2 billion yen.

Mitsubishi Motors reported a net income of 34.7 billion yen, an improvement of 26.0 billion yen over fiscal 2006. Factors holding back an even greater improvement in the net position include operational restructuring costs stemming from the closure of the body assembly plant at Mitsubishi Motors Australia Ltd., the writing off of impairment losses in Japan and America.

Fiscal 2007 marks the second consecutive year that Mitsubishi Motors has posted surpluses at all levels (operating, ordinary and net profits) for the full financial year and indicates the company has achieved its aim of establishing a profitable financial and operating structure. In addition, both the operating and ordinary income figures for fiscal 2007 represent new highs in the history of the company.

Credits: Jarvis