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Mitsubishi Motors slips to net loss in FY16

Staff Writer | May 9, 2017
Mitsubishi Motors reported hat its fiscal 2016 net loss attributable to owners of the parent was 198.5 billion yen, compared to prior year's profit of 72.6 billion yen.
Mitsubishi Motors   The fuel economy issue
The net loss reflected the fuel economy issue in the first half.

The company reported an operating profit of 5.1 billion yen, down 96 percent from last year's 138.4 billion yen. Operating margin was 0.3 percent, compared to 6.1 percent a year ago.

Revenues of 1.91 trillion yen declined 16 percent from 2.27 trillion yen last year. Retail volume dropped 12 percent to 926 thousand units from 1,048 thousand units a year ago.

Unit sales recovered in the second half of the year in Japan - partly reflecting the resumption of Kei-car sales - and reached the planned volume in almost all other regions.

Looking ahead, for fiscal 2017, MMC forecast that global sales would increase by 11% year-on-year to 1.029 million units.

Net sales are projected to rise 5% year-on-year to 2 trillion yen. MMC expects to achieve operating profits of 70 billion yen, representing a 3.5% operating margin.

Net income is forecast to be 68 billion yen, which implies a recovery to the levels reported in fiscal 2015.