Mitsubishi posts first annual N.A. profit in seven years

TOKYO -- Mitsubishi Motors Corp. booked double-digit profit increases in the latest quarter to propel the carmaker to record annual earnings and its first North America profit in seven years.

Global operating profit soared 30 percent to 35.1 billion yen ($293.4 million) in the January-March fiscal fourth quarter, while net income climbed 20 percent to 19.6 billion yen ($163.8 million), President Tetsuro Aikawa said today while delivering the carmaker’s earnings report.

Revenue rose 3 percent to 592.1 billion yen ($4.95 billion) in the quarter ended March 31, while global sales rose 4.8 percent to 284,000 units, led by Japan, China and the United States.

In North America, Mitsubishi’s recovery gathered pace in the fourth quarter, with sales surging 19 percent to 32,000 vehicles. The quarterly regional operating loss narrowed to 1.0 billion yen ($8.4 million), from an operating loss of 1.6 billion yen ($13.4 million) a year before.

But that loss wasn’t enough to derail Mitsubishi’s profit trajectory. Mitsubishi logged a North American operating profit of 500 million yen ($4.18 million) for the full fiscal year. The razor-thin result was its first 12-month regional operating profit since the fiscal year ended March 31, 2007.

For the full fiscal year, Mitsubishi’s North American sales rose 21 percent to 117,000 vehicles.

Records across board

On a consolidated basis, Mitsubishi scored record full-year results across the board.

Operating profit rose 10 percent to an all-time high of 135.9 billion yen ($1.14 billion) in the fiscal year ended March 31. Net income grew 13 percent to a record 118.2 billion yen ($1.14 billion). Revenue also reached a new high, adding 4.2 percent to 2.18 trillion yen ($18.22 billion).

Looking ahead to the current fiscal year ending March 31, 2016, Mitsubishi predicts earnings will retreat. Operating profit is forecast to decline 8 percent to 125.0 billion yen ($1.04 billion), while net income falls 15 percent to 100.0 billion yen ($835.9 million).

Revenue should advance 4.6 percent to 2.28 trillion yen ($19.06 billion), and worldwide sales should inch ahead just 0.9 percent to 1.1 million vehicles.

Profits will get hit by falling sales in Japan and Southeast Asia, as well as ramped up r&d expenses, Mitsubishi said. But foreign exchange losses will take the biggest bite, with Mitsubishi heavily exposed to the falling euro, Thai baht and Russian ruble.

In North America, Mitsubishi expects sales to climb 9.4 percent to 128,000 vehicles in the current fiscal year. It forecasts regional operating profit to soar to 7.0 billion yen ($58.5 million).