Non-consolidated results

While total demand in Japan fell 6.1% over the previous year, Mitsubishi Motors reported a decline in sales of just 3.7%. A drop of 4.8% in shipments to Asia, however, resulted in total company sales of 2,334 billion yen, a drop of 166.6 billion yen on fiscal 1997.

Despite the drop in sales, the company is able to report surpluses in both ordinary and net profits, as a result of uncompromising cost reductions and other measures. Ordinary profit was 5.2 billion yen, a substantial increase of 27.4 billion yen over the previous year. Net income for the year was 22.1 billion yen, a major increase of 47.8 billion yen over 1997, and resulting, in part, from profits on the sale of land at the Tokyo Motor Vehicle Works Maruko factory. The improvement from deficit to surplus in both ordinary and net profits was achieved in one year. The company has no plans to pay an end-of-year dividend.

Consolidated results

Consolidated sales were 3,512.6 billion yen for fiscal 1998, a decrease of 222.6 billion yen on fiscal 1997. However, the company is able to report a consolidated net profit for the term of 5.7 billion yen, which represents a major increase of 107.5 billion yen over the previous year. This improvement is due to the company's subsidiaries in the United States, Europe and Thailand moving into the black in fiscal 1998. The improvement from deficit to surplus in both ordinary and net profits was, as with the non-consolidated results, achieved in one year.

Forecasts for fiscal 1999

The company forecasts continued uncertainty in the business environment in fiscal 1999, for while a slight recovery in demand in the home market is anticipated, increasing local production overseas will see a drop in exports, and the Yen is expected to strengthen against the dollar. In view of this, the company will endeavor, in fiscal 1999, to accomplish its targets through the determined execution of the RM2001 mid-term management plan, by offering products that meet market needs, and through scrupulous attention to customer satisfaction.

In its non-consolidated business, the company forecasts sales of 2,200 billion yen, 5.7% down on fiscal 1998. By means of further cost reductions, however, the company predicts ordinary profit of 20 billion yen and net income of 6 billion yen, which will enable it to restore payment of dividends as it declared in November last year.

In its consolidated business, the company forecasts sales of 3,520 billion yen, a similar figure to fiscal 1998. The company will make further efforts to consolidate net profit for the year by improving the financial base of its sales companies in Japan, and by increasing earnings at its overseas operations.