Mitsubishi Motors Corp. expects to post a 48-percent jump in operating profits to JPY100 billion ($1.06 billion) in the current fiscal year ending March 31, 2014, according to Mitsubishi president Osamu Masuko. The Japanese carmaker based its forecast on a favorable yen exchange rate and on an anticipated increase in sales in the United States.
Mitsubishi's operating profit forecast for the fiscal year ending March 31, 2014, places the Japanese carmaker within reach to match or surpass its record operating profit of $1.15 billion, logged in the fiscal year that ended March 31, 2007.
Mitsubishi's forecast for the current fiscal year comes as the carmaker posted a record net income in the fiscal year ended March 31, 2013, thanks to the benefits of the weakening yen.
Mitsubishi posted a 59-percent jump in net profit in the previous fiscal year to a record $403.3 million, while posting a flat growth in revenues at $19.28 billion. The carmaker posted a 6-percent rise in operating profit to $715.8 million. Mitsubishi had forecasted that it would log a drop in net income in the fiscal year ended March 31, 2013.
However, the drastic depreciation of the Japanese yen in the final quarter of the fiscal year reversed the carmaker’s forecast. In the quarter covering January to March 2013, the yen heavily depreciated against the dollar and other currencies, allowing Mitsubishi to log a foreign exchange gain of $199.7 million.
Other Japanese carmakers are bound to release their full-year earnings in the next days and weeks, and their results are expected to mirror that of Mitsubishi's strong currency gains in the January-March quarter.