Mitsubishi may break even in North America for full fiscal year

Article by Anita Panait, on August 7, 2013

Mitsubishi Motors Corp.’s operations in North America may break even for the fiscal year ending March 31, 2014, as boosted by a depreciating Japanese yen as well as ramped-up production of the Outlander Sport compact crossover at its Normal site in Illinois, according to Yoshihiro Kuroi, senior executive officer in charge of corporate planning.

The last time Mitsubishi posted a profit in North America was for the fiscal year ended March 31, 2007, when it recorded ¥600 million ($6.37 million) in profits.

Kuroi said that in the fiscal first quarter ended June 30, 2013, the carmaker’s posted a huge drop in operating losses to ¥2.3 billion ($24.43 million), from operating losses of ¥7.4 billion ($78.59 million) in the same period in 2012, despite stagnant sales of about 23,000 vehicles.

The production of the Outlander Sport in Illinois, which started in July 2012, helped fill in capacity at a site that was phasing out older models like the Endeavor crossover, Galant sedan and Eclipse sporty car.

The move also allowed Mitsubishi to offset exchange rate losses on importing the vehicle. The depreciating yen also hiked profit margins on Japan-built models like the standard Outlander crossover and Lancer sedan.

Kuroi said they expect the “trend of improving earnings” to continue, as the carmaker want to make the “most of this opportunity” to post a breakeven as quickly as possible this year.

Mitsubishi sold about 23,000 vehicles in North America in its first fiscal quarter period, with a goal to sell around 100,000 units for the full fiscal year. The carmaker sold 249,000 vehicles around the world, for a 4-percent jump.

Mitsubishi's posted an overall net income of $174.60 million in the fiscal first quarter, reflecting an 18-percent drop. Global revenues at the carmaker were $4.35 billion in the quarter. [source: automotive news - sub. required]

If you liked the article, share on:

Comments

Recommended

As seasons change, temperatures rise and fall. The changes affect our preferences when it comes to driving cars. Therefore, Aston Martin introduces the new DB11 Volante or convertible, and it...
by - October 16, 2017
Aston Martin may be known for building many of the stylish Bond cars we see on the big screen but nobody really knew how it can get super aggressive when...
by - October 16, 2017
Today, manual transmissions have become rare in mainstream cars and are more commonly found in performance cars within the $20,000 to $40,000 range. However, the selection of affordable, three-pedal performance...
by - October 16, 2017
We expected to see the BMW i8 Roadster at last month’s 2017 Frankfurt Motor Show, but it never made an appearance. So the question on fans’ lips now is when...
by - October 16, 2017
Jaguar has just released the first official image of its newest offering, the new Jaguar XEL. Essentially the long-wheelbase version of the Jaguar XE compact sedan, the new Jaguar XEL...
by - October 14, 2017
Facebook

Youtube Channel

Tip Us
Do you have a tip for us?
Did you film an important event?
Contact us
Newsletter
Subscribe to our newsletter!
Subscribe
Galleries