Mitsubishi Motors said its quarterly earnings were negative in Europe, mostly because of the depreciating value of the Russian ruble, while the automaker’s accelerated sales momentum in North America led to a recovery in profit.
Worldwide net income during the third fiscal quarter that ended December 31 was down 10 percent to 37.7 billion yen ($314.4 million) as revenues slid 6 percent to 553.5 billion yen ($4.62 billion), said the Japanese carmaker in its quarterly financial report. Total operating profit fell 16 percent to 38.1 billion yen ($317.7 million) in the quarter. North America, which is the group’s smallest regional market, quarterly profit tripled to 3 billion yen ($25 million) as sales jumped 12 percent to 28,000 units. The company faces a dire situation though, with declining sales in Japan and recessing profits in Europe – where the company was negatively impacted by the weakening Russia ruble. On the other hand, global deliveries of Mitsubishi products soared 3 percent to 285,000 autos.
Thanks to increased North American demand for models such as the Outlander Sport compact crossover and Mirage subcompact hatchback, Mitsubishi lifted its regional forecast for the full financial year ending March 31. It believes it would have sales of 117,000 units on the continent, surging by 21 percent from the 97,000-unit figure accounted in the previous fiscal year. The operations are also well on their way to posting a billion yen ($25 million) operating profit in the current fiscal year – for the first time since the fiscal year ended March 31, 2007, when it posted just 600 million yen ($5 million).
Via Automotive News Europe