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Tokyo, October 28, 2016
Mitsubishi Motors Corporation Announces Fiscal 2016 First Half Operating Results and Revises Full-year Forecasts
Tokyo, October 28, 2016 - Mitsubishi Motors Corporation (MMC) today announced its sales and financial results for the first half of the 2016 fiscal year (FY) ending March 31, 2017 along with a full-year forecast revision.
 
 
1. Performance overview
MMC posted consolidated net sales of 864.9 billion yen for the first half of fiscal 2016 (April 1 through September 30, 2016), a 19% or 204.9 billion yen decrease over the same period last fiscal year.
MMC posted an operating income of -31.6 billion yen, a decrease of 90 billion yen over the same period last fiscal year due to the impact of a halt in production and sales for some models stemming from the issue of improper conduct in fuel economy testing in Japan, increased market quality measure costs, and the appreciation of the Japanese yen.
MMC posted an ordinary income of -28.2 billion yen, a decrease of 86.7 billion yen over the first half of FY2015. Net income for the first half of FY2016 attributable to owners of the parent was -219.6 billion yen, a decrease of 271.7 billion yen, due to the booking of an extraordinary loss of 166.2 billion yen related to losses incurred as a result of improper conduct in fuel economy testing issue.
 
2. Sales volume (Retail)
Global retail sales volume for the first six months of FY2016 totaled 436,000 units, a decrease of 16% or 85,000 units over the same period last fiscal year. Sales volumes by regions were as follows.
 
Japan: Sales volume totaled 29,000 units, a year-on-year decrease of 37% or 17,000 units. Sales fell sharply, affected by the improper conduct in fuel economy testing issue.  
 
North America: Sales volume totaled 69,000 units, about the same level as same period last year. Strong sales of the Outlander were countered by a drop in sales of the Mirage.
 
Europe: Sales volume totaled 90,000 units, a year-on-year decrease of 13% or 14,000 units. A drop in sales in Russia due to the stagnant state of its economy was compounded by a continuing inventory shortage of the ASX compact SUV (RVR or Outlander Sport in some countries) in Western Europe as well as a decline in sales of the Outlander PHEV, mostly in the Netherlands.
 
Asia: Sales volume came to 140,000 units, a year-on-year decrease of 8% or 12,000 units.
In the ASEAN region, sales volume totaled 98,000 units, a year-on-year decrease of 1% or 1,000 units. Firm sales of the Pajero Sport (Montero Sport in some countries) and aggressive sales promotions in the Philippines and Thailand boosted overall sales volume, however sales of light commercial vehicles in Indonesia slowed due to sluggish raw material prices.
In the North Asia region, sales volume totaled 42,000 units, a year-on-year decrease of 22% or 11,000 units. The fall in sales was due to decreased competitiveness stemming from a lack of new MMC-brand models in China.
 
Other Regions: Sales volume totaled 108,000 units, a year-on-year decrease of 28% or 42,000 units. Sales in the Middle East and Latin America plunged under economic downturns stemming from the fall in oil prices.
 
3. Revision to fiscal 2016 full-year forecasts
 
  • Sales volume:
933,000 units (29,000 units down from June 22, 2016 forecast)
  • Net sales:
1840.0 billion yen (70 billion yen down)
  • Operating income:
-27.6 billion yen (52.6 billion yen down)
  • Ordinary income:
-28.2 billion yen (60.2 billion yen down)
  • Net income
    attributable to owners of the parent:
-239.6 billion yen (94.6 billion yen down)
 

Note on forward-looking statements
All statements herein, other than historical facts, contain forward-looking statements and are based on Mitsubishi Motors Corporation'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 news release;
  • Fluctuations in interest rates, exchange rates and oil prices;
  • Changes in laws, regulations and government policies; and
  • Regional and/or global socioeconomic changes.

Potential risks and uncertainties are not limited to the above and Mitsubishi Motors Corporation is not under any obligation to update the information in this news release to reflect any developments or events in the future.

If you are interested in investing in Mitsubishi Motors Corporation, you are requested to make a final investment decision at your own risk, taking the foregoing into consideration. Please note that neither Mitsubishi Motors Corporation nor any third party providing information shall be responsible for any damage you may suffer due to investment in Mitsubishi Motors Corporation based on the information shown in this news release.

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