Mitsubishi Motors Reports Better-Than-Expected Results for First-Half FY 2002, Confirms Full-Year Profit Forecast
JapanCorp: <http://www.japancorp.net/?page_num=1> Mitsubishi Motors Reports Better-Than-Expected Results for First-Half FY 2002, Confirms Full-Year Profit Forecast Tokyo, Japan, Nov. 13, 2002 - (JCN Newswire) - Mitsubishi Motors Corporation (MMC) today announced its consolidated results for the half-year ended September 30, 2002, presented its full-year forecast for FY2002, and reported on the progress of its Turnaround. Highlights include: -Rapid cost improvements complemented by revenue growth for first time -Operating profit, ordinary income, and net income up again for second straight year -Truck and bus spin-off to strengthen operating base of both passenger car and truck & bus operations Consolidated net sales had been on a continuous decline since FY1997. Now for the first six months of FY2002, consolidated net sales increased 5.6 percent from a year earlier to a total of 1.6 trillion yen. Driven by steady progress in its turnaround, MMC reported operating profit of 23.5 billion yen, ordinary income of 18.9 billion yen, and net income of 6.6 billion yen. This represents year-on-year increases of 36.6 billion yen, 46.3 billion yen, and 38.1 billion yen, respectively. Despite the continuing severity of market conditions, MMC forecasts that for the full-year ending March 31, 2003, an acceleration in turnaround-driven improvements will lead to sales of 3.4 trillion yen, operating profit of 77 billion yen, ordinary income of 55 billion yen, and net income of 38 billion yen. Passenger Car Operations In place since FY2001, MMC's Turnaround has been successful in bringing the company back to profitability. Turnaround initiatives continue to gain momentum; further gains will be seen in reducing costs, focusing on core activities, optimizing processes, improving brand power, and developing new products. "The second year of our turnaround is making steady progress. We're well positioned to increase profits over last year and are on track to reach our fiscal 2002 targets," said MMC President and CEO Rolf Eckrodt. "The launch of the Colt and the spin-off of our truck and bus operations mark the next phase of our plan for sustainable growth," he added. Cost reduction MMC expects overall improvements of 265 billion yen in FY2002, beating its original cost saving target of 175 billion yen. The target to reduce material costs by 15 percent by FY2003 is expected to be reached much earlier. MMC took a major step in accelerating the globalization and efficiency of its procurement activities when it dissolved its Kashiwa-Kai cooperative suppliers organization in June in favor of establishing a more open relationship with suppliers globally. About Mitsubishi Motors Corporation Mitsubishi Motors Corporation was established in 1970 and is one of the few automobile companies in the world that produces a full line of automotive products ranging from 660-cc mini cars and passenger cars to commercial vehicles and heavy-duty trucks and buses. The company also operates consumer financing services and provides this to its customer base. Automobile operations accounted for 98% of fiscal 2000 revenues and financing business, 2%. The company has one hundred and eighty nine consolidated subsidiaries worldwide. Overseas sales accounted for 56.8% of fiscal 2000 revenues. Mitsubishi Heavy Industries, Ltd. is the major shareholder with 25.62% of issued stock.For further information, please visit the Mitsubishi Motors Corporation home page at: www.mitsubishi-motors.co.jp <http://www.mitsubishi-motors.co.jp> Contact Mitsubishi Motors Corporation Fumio Nishizaki Manager Corporate Communications Department f-nishizaki@mitsubishi-motors.co.jp Tel. +81-3-5232-7342 _____ Nov. 13, 2002, 10:38 (JST) Source: Mitsubishi Motors Corporation Mitsubishi Motors Corporation www.mitsubishi-motors.co.jp <http://www.mitsubishi-motors.co.jp> From the Japan Corporate News Network www.japancorp.net <http://www.japancorp.net> Topic: Earnings Sectors: Auto General, Earnings © 2002 JCN Newswire. A division of Japan Corporate News Network KK. All rights reserved.