AutoBeta(AutoBeta.net)05/10 Report--

Tokyo-based Mitsubishi Motors reported its annual results on May 9 local time, benefiting from rising sales, cost control and powertrain business. Profit in fiscal 2018 (April 1, 2018-March 31, 2019) increased by 14% compared with the same period last year.

In the data, the company had revenue of $1.2 billion; operating profit rose to $1.01 billion, up 13 per cent year-on-year to 1.24 million vehicles due to growth in global sales; and revenue reached $22.65 billion.

Sales in North America rose 12 per cent to 173000, helped by an increase in operating profit to $31.6 million. Sales in Europe surged 25 per cent from the same period to 235000 vehicles, but the region recorded a loss of nearly $40m, compared with a profit of $96.6 million in 2017.

Mitsubishi expects global sales to grow by 5-1.31 million vehicles in the current fiscal year ending March 31, 2020, while North America will fall to 169000. The company's operating profit will fall 19 per cent, while net income will fall 51 per cent. Net income fell more sharply than in the last fiscal year, mainly because the increase in regional income tax boosted performance in the last fiscal year, while adverse foreign exchange rates combined with rising R & D spending will also affect the company's performance.

Mitsubishi Motors CEO Yoshiko said in announcing its results for the last fiscal year and expectations for the current fiscal year that the company would suspend expansion activities to restructure its core business to make a profit. Yoshiko also said Mitsubishi did not discuss management restructuring with Nissan and Renault, nor was it aware of the negotiations between Nissan and Renault.

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