For the quarter ended March 31, Mitsubishi Motors Corp. posted a 42% decrease in profit due to the effect of the strong Japanese yen and production delays related to the earthquake in Japan. Mitsubishi didn’t provide a forecast for sales or production this year due to “extreme difficulty” in doing so because of uncertainties surrounding its recovery.
In a research note, IHS Automotive Insight said that Mitsubishi has resumed partial production in Japan and anticipates that its production will be at 80% of normal volume until October, which is when full production is scheduled to start.
For the quarter, Mitsubishi posted a net profit of 17.8 billion Japanese yen ($216.4 million). In the quarter, its operating profit declined by 19% to 27.3 billion yen ($331.8 million).
For the fiscal year that ended on March 31, Mitsubishi sold 1.1 million vehicles, 15% higher compared to the previous year. Mitsubishi promised that it will give a forecast of the new fiscal year's financial and production outlook; however, it didn’t give a time frame.
The company said that it had an annual net income of 15.6 billion Japanese yen ($189.3 million) as the result of higher sales for new models and sales growth in emerging markets, specifically in China.
In addition, net sales increased by 26% to 1.8285 trillion yen ($22.24 billion). Approximately 57% of Mitsubishi's vehicle sales were in Asia, about 164,000 units of which were made in Japan. Throughout Asia, sales climbed by 18% but in Japan, sales declined by 7%.