Mitsubishi Motors Announces First Quarter Fiscal 2009 Results

TOKYO, JAPAN – July 30, 2009: Mitsubishi Motors Corporation (MMC) today announced its sales and financial results for the first quarter of the 2009 fiscal year ending March 31, 2010.

PERFORMANCE OVERVIEW
Mitsubishi Motors reports that consolidated net sales totalled 259.1 billion yen in the first quarter of fiscal 2009 (April 1 through June 30), a 58 percent decline from the same period last fiscal year, or a decrease of 351.0 billion yen. With the sudden market downturn brought on by the worldwide recession and financial crisis from last autumn onward, sales volume decreased; this along with the stronger yen contributed to the fall in net sales.

Mitsubishi Motors posted an operating loss of 29.6 billion yen, 39.5 billion yen down from the operating profit of 9.9 billion yen of the same period last fiscal year. Despite positive factors such as reductions in sales expenses, lower depreciation from impairment losses accounted for last fiscal year at the company's U.S. manufacturing facility, and company-wide cost reductions including reduced labour cost, these positive factors were overcome by greater negative factors such as lower sales volume and the stronger yen, contributing to the loss.

Mitsubishi Motors reported an ordinary loss of 27.8 billion yen (44.0 billion yen down from the ordinary profit of 16.2 billion yen of the same period last fiscal year). The company booked foreign exchange gains as non-operating income.

Mitsubishi Motors posted a net loss of 26.4 billion yen (36.7 billion yen down from the net profit of 10.3 billion yen from the same period last fiscal year). The company booked a reversal of allowance for doubtful accounts stemming from decreased accounts receivable as extraordinary income.

SALES VOLUME
Global retail sales volume in the first quarter of fiscal 2009 totalled 213,000 units, a 32 percent decrease of 101,000 from the same period last fiscal year, reflecting sales volume decreases in all regions (i.e. Japan, North America, Europe, and Asia and other regions).

Sales results by region were as follows: In Japan, although unit sales improved month by month with signs of positive effects from the government's eco-car incentives such as tax reductions and subsidies, total sales volume failed to recover to 2008 levels, showing a decrease of 8,000 units from the same period last fiscal year, a 21 percent drop, to 31,000 units.

In North America, despite sales volume in Canada remaining almost unchanged from the previous year, sales volume decreased by 16,000 units from the same period last fiscal year, a 42 percent drop, to 21,000 units due to lower sales volume in the United States, where overall demand remains stagnant.

In Europe, although government economic stimulus measures showed effects on improving sales in markets including Germany, market downturns in Russia and the Ukraine severely impacted the region's sales volume. As a result, sales volume for Europe decreased 43,000 units from the same period last fiscal year, a 47 percent drop, to 49,000 units.

In Asia and other regions, although sales volume increased in markets including China and the Philippines, and signs of recovery are starting to be seen in Australia and other countries, overall sales volume for the region decreased 34,000 units from the same period last fiscal year, a 24 percent drop, to 112,000 units.

FY2009 FORECASTS
As the first quarter of 2009 has proceeded as planned, Mitsubishi Motors leaves the fiscal 2009 first-half and full-year consolidated forecasts announced on April 27, 2009 unchanged at this time.