MMC's consolidated net sales to the end of the third quarter (April through December 2004) declined by 214 billion yen to 1,617.9 billion yen (FY03: 1,831.9 billion yen). By region, net sales in Europe grew 43.9 billion yen compared to the same period last year boosted by new products such as the European Colt and strong sales in Eastern Europe. Net sales in Japan, however, dropped 145.2 billion yen, as a series of quality problems had a strong effect on domestic sales. Sales in North America were also down, declining by 104.9 billion yen as the company significantly reduced fleet sales. Maintaining favorable robust sales in the Middle East, Africa, Latin America and ASEAN offset for the most part the downturn in sales in Australia and China, resulting in a slight decline for Asia and other regions of 7.8 billion yen.

As for retail unit sales by region, the all-new Colt Plus, launched on October 25, 2004, has had a positive effect on domestic sales, which have made a steady recovery since bottoming out in July 2004 when compared to the previous year. However total units sold in Japan decreased by 103,000 units to 146,000. North American unit sales dropped by 78,000 units on year to 131,000 units. European unit sales, meanwhile, increased by 12,000 units to 171,000 led by increased sales in Eastern Europe. Expanding sales in Latin America, the Middle East and Africa were not able to cover a decline in sales in Australia and China causing unit sales in Asia and other regions to slip by 15,000 units to 503,000.

Operating results for the period decreased by 13.3 billion yen year on year for an operating loss of 99.7 billion yen as a nonrecurring 41.7 billion yen charge against financial services operations in the US was more than offset by declines in unit sales in Japan and North America. Ordinary profit declined by 47.2 billion yen, affected by increased costs associated with the issuance of new shares and the deterioration of equity method affiliate investments, for an ordinary loss of 144.1 billion yen. Net profit worsened by 125.6 billion yen after the appropriation of extraordinary losses including restructuring costs, free vehicle inspection service fees, the cancelled development of a new model and asset impairment charges in the U.S. for a total net loss of 228.2 billion yen.

Furthermore, inline with the Company's recent announcement, fiscal year 2004 net sales are expected to total 2,035 billion yen with an operating loss of 132 billion, an ordinary loss of 197 billion and a net loss of 472 billion yen. This substantial loss forecasted for fiscal year 2004 includes additional extraordinary losses from restructuring and asset impairment charges. However, employees will be devoting unconditional drive to implement and realize all measures in the "Mitsubishi Motors Revitalization Plan" which sets out to regain the trust of society and quickly return MMC to a solid, sustainable financial standing from fiscal year 2005.

Summary (consolidated): FY2004 3rd Quarter Result (PDF, 1page, 103KB)

FY2004 Third Quarter Results: Consolidated Financial Statements (PDF, 10pages, 66KB)