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Mitsubishi Motors Corporation announces its decision to transfer some
property. Details of the transfer, and the revision to the company's
business forecast for the 1998 fiscal year (April 1 1998 through March
31 1999) consequent to the transfer, are given below.
1. Property to be transferred
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(1) |
Location / area: |
4-21-1 Shimo-Maruko, Ota-ku, Tokyo / 99,347 sq.m. |
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(2) |
Amount: |
32,695 million yen |
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(3) |
Payment: |
In cash (80% on signing of contract; 20% on delivery) |
2. Transferees
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(1) |
Mitsubishi Corporation
2-6-3 Marunouchi, Chiyoda-ku, Tokyo
Representative director and president: Mikio Sasaki
Area of property transferred: 78,035 sq.m. |
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(2) |
Canon Inc.
3-30-2 Shimo-Maruko, Ota-ku, Tokyo
Representative director and president: Fujio Mitarai
Area of property transferred: 21,312 sq.m. |
3. Transfer date
25 March 1999
4. Reasons for transfer
For the purpose of reforming the company to enable it to return, without reliance upon incremental growth in sales, an appropriate profit in fiscal 2000, Mitsubishi Motors last year drew up the RM2001 (Renewal Mitsubishi 2001) mid-term management plan and is currently executing many of the steps and measures it sets out.
Under the plan, the company is currently reducing overall assets and interest-bearing liabilities in order to strengthen the financial base of the company. As part of the restructuring of its production organization in Japan, the company had been considering closing down the Maruko Plant and moving personnel and plant and equipment to the Kawasaki Plant and other facilities in order to raise production efficiency. At the same time, the company had been studying how best to utilize the vacant lot after the closure. The decision to transfer the property to Mitsubishi Corporation and Canon Inc., was made because it meets the operational needs of those companies.
After transfer of the title, Mitsubishi Motors will deliver the property in stages as it gradually moves plant and equipment from the property, this taking up to the end of 2001, with a view to making full delivery in the middle of 2002. In the meantime, Mitsubishi Motors will lease the property from the transferees.
5. Revision of business forecast for year ending 31 March 1999
Mitsubishi Motors is currently working to achieve the forecasts relating to sales and profits announced in November 1998. Because the roughly 25 billion yen gain resulting from the above-stated property transfer will be posted as a special profit, the company expects unconsolidated net profit for the term to be improved by more or less the same amount.
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