(MENAFNEditorial) - Mitsubishi Motors Corporation (MMC) has announced its sales and financial results for the first quarter of the 2016 fiscal year (1Q FY2016) ending March 31, 2017.
1. Performance Overview
MMC posted consolidated net sales of 428.7 billion yen over 1Q FY2016 (April 1 through June 30, 2016), a 14% or 71.8 billion yen decrease over the same period last fiscal year.
MMC posted an operating income of 4.6 billion yen, a decrease of 75% or 14.0 billion yen year-on-year. Negative impact from the halt in production and sales stemming from the issue of improper conduct in fuel economy testing in Japan and increase in costs on quality measures in market affected the decrease.
MMC posted an ordinary income of 4.4 billion yen, a decrease of 82% or 19.7 billion yen year-on-year. Net income for the first quarter of FY2016 attributable to owners of the parent decreased 153.7 billion yen, to a loss of 129.7 billion yen.
2. Sales volume (Retail)
Global retail sales volume for 1Q FY2016 totaled 221,000 units, a decrease of 16% or 41,000 units over the same period last fiscal year. Sales volumes by region were as follows.
Japan: Sales volume totaled 10,000 units, a year-on-year decrease of 43% or 8,000 units. Although sales volume of registered vehicles remained unchanged, year-on-year minicars sales volume dropped drastically due to impact from the halt in production and sales, resulting in an overall decrease for the region.
North America: Sales volume totaled 37,000 units, a year-on-year increase of 5% or 2,000 units. The increase was driven in particular by firm sales of the Outlander.
Europe: A sales volume plunge in Russia due to its continuingly stagnant economy was mitigated by an increase in sales of the Outlander in Western Europe, limiting the decrease in sales to 8,000 units for a sales volume total of 47,000 units, a year-on-year decrease of 15%.
Asia: Although sales of the Pajero Sport in Indonesia shifted upward; together with increases in sales volume of the Mirage and Attrage in both Thailand and the Philippines contributed to the increase, sales volume in China decreased as the number of vehicles in MMC lineup applicable for the government subsidy for small cars (in effect from October 2015) were limited.
This decrease negatively impacted the region; resulting in overall sales volume of 71,000 units, a year-on-year decrease of 8% or 7,000 units for the entire Asia region.
Other Regions: Sales volume totaled 56,000 units, a year-on-year decrease of 26% or 20,000 units, with sluggish sales in the Middle East and Africa as a result of economic downturns in those areas.
3. Fiscal 2016 forecasts
Mitsubishi Motors Corporation has decided to leave its consolidated forecasts announced on June 22, 2016 unchanged for the full-year of FY2016 (April 1, 2016 through March 31, 2017).