|
Tokyo, May 28 --- Mitsubishi Motors Corporation today announced sales
for the fiscal year that ended 31 March 1998 of 2,500,614 million yen,
a decrease of 3.3% on the 2,585,940 million yen of the previous fiscal
year. Ordinary loss was 22,157 million yen, and net loss was 25,656 million
yen.
Domestic sales of passenger cars, trucks and buses in fiscal 1997 were
606,049 units, compared with 772,047 units for fiscal 1996. Exports of
vehicles were 601,146 units, compared with 481,169 units. Total sales
in the 1997 fiscal year were 1,207,195 units, compared with 1,253,216
units for the previous fiscal year.
For the 1998 fiscal year (1 April 1998 - 31 March 1999), Mitsubishi Motors
forecasts an ordinary profit of 0 yen and net loss of 7 billion yen on
sales of 2,380 billion yen. For the first half of the 1998 fiscal year
(1 April 1998 - 30 September 1998), the company forecasts an ordinary
loss of 32 billion yen and net loss of 35 billion yen on sales of 1,110
billion yen.
FINANCIAL HIGHLIGHTS
(1 April 1997 - 31 March 1998)
|
Millions of yen
|
|
1997FY
|
1996FY
|
% Change
|
|
Sales
|
2,500,614
|
2,585,940
|
-3.3
|
|
Operating profit
|
-15,512
|
57,148
|
---
|
|
Ordinary profit
|
-22,157
|
58,035
|
---
|
|
Net income
|
-25,656
|
15,067
|
---
|
|
Earnings per share
|
-27.83Yen
|
16.36Yen
|
---
|
|
Dividends (per share)
|
3.50Yen
|
7.00Yen
|
---
|
OVERVIEW OF 1997 FISCAL YEAR BUSINESS
RESULTS
Despite the recession in the economies of S.E. Asia triggered by currency
crises, the global economy overall advanced smoothly in fiscal 1997 with
the United States' economy continuing to perform strongly and the European
economy continuing its recovery. In Japan, meanwhile, despite the continued
growth in exports and firm capital spending in the private sector, there
were growing signs of a deterioration in the state of the economy. The
deteriorate is the result of slack consumer spending owing to concern
about economic prospects after the collapse of several financial institutions,
and of a decline in capital spending in the public sector.
In the Japanese automotive industry, despite strong sales in the recreational
vehicle (SUV) segment, there was a substantial decline in total domestic
market demand, with passenger car, light commercial vehicle, minicar and
truck sales all sliding below those of fiscal 1996. Total vehicle sales
in fiscal 1997 were 6,280,000 units, a 14 percent decrease compared with
1996. Sales of domestically produced vehicles were 13 percent down at 5,960,000
units. Sales of imports were 27 percent down at 320,000 units. Exports of
finished vehicles, meanwhile, grew 21 percent to 4,670,000 units, assisted
by a decline in the value of the yen.
Mitsubishi Motors has, in this difficult market environment, made every
effort to improve quality and reduce costs. Mitsubishi Motors has introduced
several distinctive and attractive new models that anticipate market trends
and meet customer requirements and preferences and has striven to improve
its sales and service organizations. Notably, Mitsubishi Motors has increased
the number of models in its passenger car fleet powered by the GDI Global
Standard Eco-engine family that delivers substantially lower fuel consumption
with higher power output. However, the shrinkage in total demand and the
introduction of several new models by other manufacturers in the Japanese
domestic market resulted in a further intensification in sales competition.
As a result, Mitsubishi Motors reports total domestic vehicle sales volume
of 606,000 units, a 22 percent decline over fiscal 1996, and domestic registrations
of 623,000 units, a 19 percent decline. These figures gave Mitsubishi Motors
a 10.5 percent share of the domestic market in fiscal 1997, imports excluded.
Increased vehicle shipments to Europe, meanwhile, resulted in exports of
601,000 units, a 25 percent increase on fiscal 1996. Mitsubishi Motors'
combined domestic and foreign sales volume totaled 1,207,000 units, a four
percent decline on fiscal 1996.
Mitsubishi Motors reported sales income of 2,500.6 billion yen for fiscal
1997, a drop of three percent over fiscal 1996 and stemming chiefly from
decreased sales on the Japanese domestic market. Despite the implementation
of resolute measures to reduce costs and otherwise improve profitability,
Mitsubishi Motors reported an ordinary loss of 25.7 billion yen mainly due
to the decreased income stemming from slack sales in Japan.
SALES FIGURES
|
April 97 - March 98
|
April 96 - March 97
|
|
|
Domestic
|
Export
|
Total
|
Domestic
|
Export
|
Total
|
| SALES VOLUME |
Passenger cars
(regular & small-size) |
265,955 |
396,251 |
662,206 |
334,741 |
320,688 |
655,429 |
6,777 |
| Mini vehicles |
230,149 |
582 |
230,731 |
285,355 |
225 |
285,580 |
-54,849 |
| Trucks (below 1 ton) |
20,293 |
151,822 |
172,115 |
28,874 |
110,920 |
139,794 |
32,321 |
| Trucks (above 1.5 ton) |
84,627 |
49,886 |
134,513 |
117,804 |
47,223 |
165,027 |
-30,514 |
| Buses |
5,025 |
2,605 |
7,630 |
5,273 |
2,113 |
7,386 |
244 |
| TOTAL |
606,049 |
601,146 |
1,207,195 |
772,047 |
481,169 |
1,253,216 |
-46,021 |
| SALES AMOUNT (Millions of yen) |
| Vehicle sales |
1,034,578 |
839,557 |
1,874,135 |
1,305,544 |
657,064 |
1,962,608 |
-88,473 |
| Parts for overseas production |
--- |
242,146 |
242,146 |
--- |
240,110 |
240,110 |
2,036 |
| Parts & others |
162,268 |
222,065 |
384,333 |
175,258 |
207,964 |
383,222 |
1,111 |
| TOTAL |
1,196,846 |
1,303,768 |
2,500,614 |
1,480,802 |
1,105,138 |
2,585,940 |
-85,326 |
PROFIT AND LOSS STATEMENT
|
Millions of yen
|
|
1997FY
|
1996FY
|
Change
|
| ORDINARY INCOME AND EXPENSES |
|
|
|
| Operating income and expenses |
|
|
|
| Sales |
2,500,614 |
2,585,940 |
-85,326 |
| Cost of sales |
2,173,598 |
2,203,247 |
-29,649 |
| Selling and administrative expenses |
342,527 |
325,544 |
16,983 |
| Operating profit |
-15,512 |
57,148 |
-72,660 |
| Non-operating income and expenses |
| (Non-operating income) |
(16,785) |
(18,827) |
(-2,042) |
| Interest and dividends income |
10,638 |
11,520 |
-882 |
| Other Income |
6,146 |
7,306 |
-1,160 |
| (Non-operating expenses) |
(23,430) |
(17,939) |
(5,491) |
| Interest expenses |
15,487 |
14,014 |
1,473 |
| Other expenses |
7,943 |
3,925 |
4,018 |
| Ordinary profit |
-22,157 |
58,035 |
-80,192 |
| EXTRAORDINARY INCOME AND EXPENSES |
| (Extraordinary profit) |
(1,019) |
(10,096) |
(-9,077) |
| Reversal of bad debt allowance |
1,019 |
--- |
1,019 |
| Income from sale of securities |
--- |
10,096 |
-10,096 |
| (Extraordinary loss) |
(4,417) |
(47,764) |
(-43,347) |
| Loss on disposal of fixed assets |
4,417 |
4,585 |
-168 |
| Loss on appraisal of investments in subsidiaries |
--- |
43,178 |
-43,178 |
| Income before income taxes |
-25,556 |
20,367 |
-45,923 |
| Corporation and resident taxes |
100 |
5,300 |
-5,200 |
| Net income |
-25,656 |
15,067 |
-40,723 |
| Retained earnings brought forward from previous
period |
25,751 |
25,560 |
191 |
| Interim dividends |
3,226 |
3,223 |
3 |
| Provision for legal reserve |
322 |
322 |
0 |
| Unappropriated retained earnings at end of period |
-3,453 |
37,082 |
-40,535 |
PROPOSED APPROPRIATION OF RETAINED EARNINGS
|
Millions of yen
|
|
1997FY
|
1996FY
|
Change
|
| Unappropriated retained earnings at end of period |
-3,453 |
37,082 |
-40,535 |
| Reversal of special depreciation reserve |
11 |
14 |
-3 |
| Reversal of overseas investments loss reverse |
--- |
57 |
-57 |
| Reversal of reserve for deferred gains of fixed
assets |
307 |
334 |
-27 |
| TOTAL |
-3,134 |
37,490 |
-40,624 |
| Proposed appropriation of earnings |
| Legal reserve |
--- |
339 |
-339 |
| Dividend (3.50 yen per share in 1996FY) |
--- |
3,226 |
-3,226 |
| Director & statutory auditor bonuses |
--- |
172 |
-172 |
| Overseas & investments loss reserve |
2,756 |
--- |
2,756 |
| General reserves |
--- |
8,000 |
-8,000 |
| Retained earnings to be carried forward to next
period |
-5,890 |
25,751 |
-31,641 |
- Interim dividend of 3.50 yen per share
was paid on 10 December 1997
- The special depreciation reserve, overseas
investments loss reserve, and reserve for deferred gains of
fixed assets are in accordance with the Special Taxation Measures
Law.
|
BALANCE SHEET
| ASSETS |
Millions of yen
|
|
3/31/1998
|
3/31/1997
|
Change
|
| Current Assets |
790,450
|
876,334
|
-85,884
|
| Cash on hand and in banks |
22,647
|
8,767
|
13,880
|
| Notes receivable |
4,780
|
5,641
|
-861
|
| Accounts receivable |
351,966
|
521,778
|
-169,812
|
| Marketable securities |
58,740
|
64,574
|
-5,834
|
| Finished products |
120,096
|
88,377
|
31,719
|
| Raw materials and supplies |
11,947
|
11,747
|
200
|
| Work in process |
88,352
|
86,590
|
1,762
|
| Advanced payments |
---
|
63
|
-63
|
| Prepaid expenses |
1,440
|
961
|
479
|
| Short-term loans receivable |
40,077
|
11,657
|
28,420
|
| Other current assets |
93,656
|
80,377
|
13,279
|
| Allowance for doubtful accounts |
-3,254
|
-4,203
|
949
|
| Fixed Assets |
933,803
|
829,576
|
104,227
|
| (Tangible fixed assets) |
(535,081)
|
(517,543)
|
(17,538)
|
| Buildings |
93,303
|
91,730
|
1,573
|
| Structures |
23,647
|
22,841
|
806
|
| Machinery and equipment |
181,299
|
176,960
|
4,339
|
| Transportation equipment |
4,017
|
3,654
|
363
|
| Tools, furniture and fixtures land |
22,671
|
22,399
|
272
|
| Land |
184,470
|
177,910
|
6,560
|
| Construction in progress |
25,670
|
22,045
|
3,625
|
| (Intangible fixed assets) |
(1,397)
|
(1,415)
|
(-18)
|
| Intangible fixed assets |
1,397
|
1,415
|
-18
|
| (Investments) |
(397,324)
|
(310,617)
|
(86,707)
|
| Investment securities |
37,204
|
37,618
|
-414
|
| Investments in subsidiaries |
317,193
|
202,539
|
114,654
|
| Long-term loans receivable |
1,922
|
32,579
|
-30,657
|
| Miscellaneous investments and guaranty money |
25,846
|
22,761
|
3,085
|
| Long-term prepaid expenses |
15,440
|
15,331
|
109
|
| Other investments |
7,959
|
8,213
|
-254
|
| Allowance for doubtful accounts |
-8,241
|
-8,425
|
184
|
|
TOTAL ASSETS
|
1,724,254
|
1,705,910
|
18,344
|
BALANCE SHEET
| LIABILITIES & SHAREHOLDERS' EQUITY |
Millions of yen
|
|
3/31/1998
|
3/31/1997
|
Change
|
| Current Liabilities |
807,818
|
828,896
|
-21,078
|
| Notes payable |
22,621
|
26,959
|
-4,338
|
| Accounts payable |
343,916
|
393,880
|
-49,964
|
| Short-term loans payable |
139,859
|
190,414
|
-50,555
|
| Bonds (Payable within a year) |
94,500
|
---
|
94,500
|
| Other accounts payable |
101,890
|
98,910
|
2,980
|
| Corporation taxes payable |
100
|
---
|
100
|
| Enterprise taxes payable |
1,370
|
3,247
|
-1,877
|
| Accrued expenses |
33,489
|
35,774
|
-2,285
|
| Advanced received |
3,483
|
6,513
|
-3,030
|
| Deposits received |
10,152
|
12,254
|
-2,102
|
| Employees savings deposits |
27,114
|
28,584
|
-1,470
|
| Warranty claims allowance |
26,092
|
24,510
|
1,582
|
| Other current liabilities |
3,226
|
7,847
|
-4,621
|
| Fixed Liabilities |
471,403
|
399,705
|
71,698
|
| Bonds |
288,918
|
208,923
|
79,995
|
| Long-term loans payable |
91,262
|
99,146
|
-7,884
|
| Deposit received for guarantee |
18,723
|
18,416
|
307
|
| Accrued severance indemnities |
72,500
|
73,218
|
-718
|
|
TOTAL LIABILITIES
|
1,279,221
|
1,228,602
|
50,619
|
| Capital |
136,224
|
136,221
|
3
|
| Statutory Reserves |
114,369
|
113,704
|
665
|
| Capital surplus |
105,339
|
105,337
|
2
|
| Legal reserve |
9,029
|
8,367
|
662
|
| Earned Surplus |
194,438
|
227,381
|
-32,943
|
| Special depreciation reserve |
144
|
159
|
-15
|
| Overseas investments loss reserve |
921
|
979
|
-58
|
| Reserve for deferred gains of fixed assets |
18,825
|
19,160
|
-335
|
| Special reserve |
178,000
|
170,000
|
8,000
|
| Unappropriated retained earnings at end of period |
-3,453
|
37,082
|
-40,535
|
| (Net income) |
(-25,656)
|
(15,067)
|
(-40,723)
|
|
TOTAL SHAREHOLDER'S EQUITY
|
445,032
|
477,308
|
-32,276
|
|
TOTAL LIABILITIES & SHAREHOLDER'S
EQUITY
|
1,724,254
|
1,705,910
|
18,344
|
NOTES TO FINANCIAL STATEMENTS
1.SIGNIFICANT ACCOUNTING POLICIES |
| (1) |
Marketable securities |
|
|
Shares with exchange quotation |
Determined at the lower of cost or
market using the moving average method |
|
Other marketable securities: |
Determined at cost using the moving
average method |
| (2) |
Inventories |
|
|
Finished products & work in process:
|
Value determined on a First-in, First-out
basis. |
|
Raw materials |
Valued at cost using the overall average
method |
| (3) |
Depreciation of tangible assets |
Depreciation is provided on a declining
balance basis. |
| (4) |
Allowances |
|
|
Doubtful accounts |
The allowance for losses due to doubtful
accounts is maintained at a level deemed appropriate in view of
the legal limits and after assessment of collectibility. |
|
Warranty claims |
The allowance for warranty claims
is based on previous experience in accordance with the provisions
of the warranty |
|
Accrued severance indemnities |
The allowance for severance indemnities
provides, in the case of employees retiring voluntarily, 40% of
the sum payable at year-end and, in the case of directors, 100%
of the sum payable on the basis of office regulations governing
director retirement benefits at year-end. |
| (5) |
Lease transactions |
Financing leases, excluding leases
in which ownership is recognized to have transferred to the lessee,
are determined in accordance with normal lease accounting procedures. |
| (6) |
Consumption tax |
The amounts given in the Financial
Statements are ex- consumption tax |
| (1) |
The treasury stock (768 shares) included
in Marketable Securities amounts to less than 1 million yen |
|
| (2) |
Accumulated depreciation of tangible
fixed assets |
906,861million yen |
| (3) |
In addition to fixed assets included
in the balance sheet, there are leased dies for automotive production
and computers as important fixed assets. |
| (4) |
Amount receivable from or payable
to subsidiaries |
|
|
Short-term receivables |
143,447million yen |
|
Long-term receivables |
8,522million yen |
|
Short -term payables |
83,526million yen |
|
Long-term payables |
8,540million yen |
| (5) |
miscellaneous Investments and Guaranty
Money includes investments in subsidiaries of 98 million yen. |
| (6) |
Export bills discounted |
13,364million yen |
| (7) |
Contingent liabilities for loan guarantees |
270,037million yen |
| (8) |
Assets subject to lien |
2,152million yen |
| (9) |
Major assets and liabilities in foreign
currencies |
|
|
Accounts receivable |
20,978million yen |
|
(Foreign denominated accounts US$141
million) |
|
|
Investment securities |
27,142million yen |
|
(Foreign denominated securities include
121 million Dutch guilders) |
|
|
Investments in subsidiaries |
210,125million yen |
|
(Foreign denominated investments US$1,368
million) |
|
| (10) |
The balance of warrants and exercise
price regarding notes with warrants are as follows: |
|
|
The first unsecured bonds due 1999
with detachable warrants |
|
|
Balance of warrants |
49,962million yen |
|
Exercise price |
817 yen |
| (11) |
Earnings per share for the current
fiscal year (par value: 50 yen) |
-27.83 yen |
| (12) |
The accrued severance indemnities
for directors and statutory auditors amounting to 3,148million yen
is the allowance stipulated by article 287-(2) of the commercial
code. |
|
| (13) |
The increase of stock issued and capital
by conversion of convertible bonds are as follows: |
|
|
Increase of stock issued |
6,000 |
|
Conversion price |
887 yen |
|
Increase of capital |
2 million yen |
3.NOTES TO PROFIT AND LOSS STATEMENT |
| (1) |
Amount of transactions with subsidiaries |
|
|
Sales to subsidiaries |
1,081,284 million yen |
|
Purchases from subsidiaries |
231,347 million yen |
|
Non-operating transactions with subsidiaries |
17,351 million yen |
4. Notes on finance lease transactions, excluding
leases where ownership has transferred to borrower
1)Assumptive acquisition cost, assumptive accumulated depreciation
and assumptive book value of lease assets |
|
Millions of yen |
| 1997FY |
1996FY |
|
(1) Assumptive acquisition cost
Tools, furniture and fixtures
Others
|
104,302
6,647
|
105,959
6,110
|
| Total |
110,949
|
112,070
|
|
(2) Assumptive accumulated depreciation
Tools, furniture and fixtures
Others
|
67,023
3,727
|
68,182
3,301
|
| Total |
70,751
|
71,484
|
|
(3) Assumptive book value
Tools, furniture and fixtures
Others
|
37,278
2,919
|
37,777
2,809
|
| Total |
40,197
|
40,586
|
| 2.Lease payable at end of fiscal year |
|
Millions of yen |
| 1997FY |
1996FY |
| Due within a year |
22,994
|
24,949
|
| Due over a year |
33,733
|
34,189
|
| Total |
53,728
|
59,138
|
| 3.Lease payments, assumptive depreciation expense and assumptive
interest expense for fiscal year |
|
Millions of yen |
| 1997FY |
1996FY |
| Lease payments |
29,302
|
29,386
|
| Assumptive depreciation expense |
24,563
|
25,183
|
| Assumptive interest expense |
2,879
|
3,555
|
| 4.Depreciation amount is determined using the declining balance
method. |
| 5. Interest expenses are taken as the difference between total
lease amount and lease ac quisition price and are allocated to different
settlement terms by the interest method. |
|
