Mitsubishi seeks 56 percent sales growth by 2013

Article by Christian A., on August 29, 2010

By the end of 2010, Mitsubishi Motors Corp. expects to be able to announce its plans to remove billions of dollars in preferred shares from its balance sheet, according to its president.

At roughly the same time, the carmaker also expects to reveal a growth plan for a 56% increase in vehicle sales. In recent years, Mitsubishi sales have plunged.

Many analysts have stopped covering its stock because of the unsettled matter of over 400 billion yen ($4.4 billion) of unredeemed preferred shares issued mostly to the Mitsubishi group.

According to President Osamu Masuko, the only options available to the company are converting the shares to common stock, selling them through a third-party allocation, purchasing them back, or a combination of these steps.

Masuko, who moved to this post in 2005 after a great career at sister trading firm Mitsubishi Corp., said that he wants to be able to talk about it by the end of the year.

He said that the factors that could have an adverse impact to this goal are the unsteady global economy and financial markets. In an interview with Reuters, Masuko said that if these conditions persist, it would be hard to come to a decision by year-end.

If all the preferred shares are converted to common stock, it would result in a massive dilution of Mitsubishi Motors shares, adding more than 3.5 billion shares to the current 5.5 billion.

Topics: mitsubishi, sales

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