Mitsubishi Motors Corp. reported that is expecting a profit loss of 130 billion yen due to the floods in Thailand as the output was affected by factory closures and supply disruptions. Also, it presented today the financial results of the 1H fiscal 2011 (April 1 – Sept.30, 2011) compared to same period last year: 5% increase of net sales, 396% increase of operating profit, 9% increase in global sales volume.
Compared to first half of 2010, the net sales increased with 5% (42.8 billion yen) in 2011, to 907.5 billion yen compared to same period last year. The growth was determined by increased sales on emerging markets and by the introduction of new models, which off set the negative impact of yen strengthening. In the same period, operating profit reached 34.2 billion yen, a 396 percent or 27.3 billion yen increase over the same period last fiscal year.
Global retail sales figure for 1H fiscal 2011 gathered 519,000 units, a 9 percent or a 43,000 unit increase over the same period last year. Sales volumes by region were as follows:
In Japan, 1H sales volume of 72,000 units, 19% (17,000 units) less than the same period last fiscal year. This result was mainly attributed to the ending of eco-car subsidies in 2010.
In North America, sales volume reached 61,000 units, an increase of 41 percent (18,000 units) over the same period last year. The main contributor to this increase was represented by the high demand for the Outlander Sport, launched in October 2010.
In Europe, sales volume registered 117,000 units, higher with 20 percent (19,000 units) compared to same period in 2010. This was possible through cumulative increased sales on the most important European markets, including Germany, Italy, and France. Also, Russia had a major contribution due to its demand recovery.
In Asia & Other Regions, Mitsubishi Motors counted sales volume of 269,000 units, which represented a 10 percent (23,000 units) growth over the same period last year.
Mitsubishi also revised its sales forecast for the period down to 1.82 trillion yen from 1.95 trillion yen estimated in August. The flood’s effects are thought to last until late November, reducing output by near 35,000 vehicles in the year ending March 31.
Managing Director Shuichi Aoto stated: “We’re very concerned about whether our suppliers will be able to recover. (…) The floods in Thailand will reduce our operating profit by 14 billion yen to 15 billion yen.”
The Thailand factories, responsible for the production of Pajero Sport and Lancer, were shut on Oct. 13 and the date of resuming the output remains uncertain.
Taking into account on shipments of integrated circuit chips and parts from Thailand suppliers, the production in Japan may be halted for a few days.
“It’s the deliveries of the same parts that caused a bottleneck after the earthquake in March that is disrupting production again,” President Osamu Masuko said.
According to the company’s statement, the operating profit and net income targets remain unchanged this year, representing 50 billion yen, respectively 20 billion yen.