Date: May. 18, 2001
|
Date: May. 18, 2001 2. Consolidated results |
1. Fiscal 2000 results: overviewOverall, the world economy in fiscal 2000 presented a picture of good health. While there may be some uncertainty as to the future of the United States economy, which has enjoyed an extended period of strong and firm growth, the European economies continued to grow at a steady pace. In Japan, the government's package of stimulatory measures helped promote a gentle improvement in the general state of the economy. Towards the end of fiscal 2000, however, the economy appeared to be marking time with record levels of unemployment and personal consumption remaining flat. In the Japanese automotive industry in fiscal 2000, the launch of a number of new models saw total vehicle sales grow to 5,970,000 units, an increase of 2% over fiscal 1999. Sales of domestically produced vehicles were 5,690,000 units, 2% up, while sales of imports were 280,000 units, 1% up on fiscal1999. Japan's auto makers exported 4,380,000 units in fiscal 2000, an increase of 1% over the previous year. While shipments to Europe were significantly impacted by the weakness of the Euro and while shipments to North America started to decline in the second half of the fiscal year, shipments to Asia remained firm. In this market environment, the Company introduced several new models with distinctive personalities. The Company also worked to strengthen and improve its sales and after-sales service organization in order to reflect better the needs and requirements of the customer. In October 2000, the Company launched the Mitsubishi Care-free Support Program, offering free vehicle inspections to the owners of all Mitsubishi passenger car models. In its consolidated operations in fiscal 2000, MMC reports total sales volume of 1,4440,000 units, a 3.6% decrease on fiscal 1999. Consolidated sales were 3,276.7 billion yen, a 1.7% decrease over fiscal 1999. In terms of profits, group-wide efforts were made to reduce costs and to otherwise improve the financial standing of MMC consolidated companies. However, the cost reductions achieved were more than countered by a one-time charge for liabilities of retirement benefits, by restructuring costs and by costs incurred due to the implementation of recall-related measures. As a result, MMC reports an operating loss of 73.9 billion yen, an ordinary loss of 94 billion yen and a net loss of 278.1 billion yen for fiscal 2000. Looking at cash flows for fiscal 2000: cash flows from operating activities were inflow of 127.3 billion yen, while cash flows from investing activities , such as acquisition or disposal of tangible fixed assets and other investing activities were 91.5 billion yen. As to cash flows from financing activities, subtracting the increase in funds stemming from the issue of new shares to DaimlerChrysler from the larger disbursements stemming from repayment of borrowing and bond issues saw a 14.6 billion yen decrease in total disbursements. The balance of cash and cash equivalents at the end of fiscal 2000 was 115.9 billion yen, a 26.2 billion yen increase over the position at the end of fiscal 1999. 2. Segment information(1) By business Sales from the automotive business for fiscal 2000 were 3,194.1 billion yen, producing an operating loss of 70.5 billion yen. Revenues from the financial services business were 94 billion, producing an operating profit of 400 million yen. (2) By geographical region Sales in Japan were 2,437 billion yen, a decrease of 22.4 billion yen over fiscal 1999. Operating loss was 61.2 billion yen, a deterioration of 64 billion yen. Sales in North America were 911.2 billion yen, an increase of 175 billion yen over fiscal 1999. Operating profit stood at 33.6 billion yen, an increase of 16 billion yen. Sales in Europe were 395.3 billion yen, a decrease of 108.8 billion yen in fiscal 1999. Operating loss was 30.3 billion yen, a deterioration of 28.5 billion yen. Sales in Asia were 152.9 billion yen, an increase of 13.2 billion yen over fiscal 1999. Operating loss was 1.9 billion yen, an deterioration of 5.7 billion yen. Sales in other regions were 230.3 billion yen, a decrease of 15.3 billion yen over 1999. Operating loss was 9.1 billion yen, a deterioration of 4.1 billion yen. 3. Dividend paymentMMC regrets to announce that it intends once again to defer payment of year-end dividend. The Company apologizes sincerely to its shareholders and asks for their continuing understanding and patience. 4. Consolidated forecast for fiscal 2001There are concerns that the Japanese economy will continue to perform sluggishly due: to a deterioration in corporate and consumer sentiment stemming from a weakening in economies of other countries and from a significant drop in prices on the Japanese stock markets; as well as to the deflationary pressures consequent to the disposal of non-performing loans. In the automotive industry, the Company expects to find itself operating in an increasingly difficult business environment both at home and overseas, one that will require it to address speedily and efficiently such issues as diversifying market needs and the global environment. While fluctuations in the major currencies, price reductions required by intensifying market competition, the degree to which domestic consumption in Japan will recover and other factors make accurate forecasting difficult, the Company offers the following forecast for its consolidated operations in fiscal 2001, based on data and information currently available.
Cautionary statement: |
|
[ Results Index | News Release Index | Entrance ]
|
Copyright
2001 by Mitsubishi Motors Corporation.