Daily Management Review

Mitsubishi Motors posts $1.65B net loss in Q1 2020-21


In the first quarter of the 2020-2021 fiscal year ended June 30, the Japanese carmaker Mitsubishi Motors received a net loss attributable to the company's shareholders in the amount of 176.16 billion yen ($1.65 billion) against a profit of 9.312 billion yen ($87,6 million) a year earlier, the company said.

Loss per share was 118.36 yen ($1.11) against profit of 6.26 yen ($0.058) in the same period of the previous fiscal year. Mitsubishi Motors' revenue fell 2.3 times year-on-year, to 229.55 billion yen ($2.16 billion). Operating loss was 53.34 billion yen ($501.7 million) against a profit of 3.857 billion yen ($36.3 million) a year earlier. The company's global sales in the reporting quarter fell 2.1 times year on year, to 139 thousand units.

According to the results of the entire 2020-2021 fiscal year, Mitsubishi Motors expects to receive a net loss attributable to the company's shareholders in 360 billion yen ($ 3.38 billion), which means a 14-fold increase in loss for the year. The company also predicts a decline in revenue by 35% to 1.48 trillion yen ($ 13.9 billion).

In addition, the company announced its three-year medium-term business plan (from 2020-2021 fiscal year to 2022-2023), under which it, in particular, plans to reduce fixed costs by 20% or more compared to the 2019-2020 financial year. Mitsubishi Motors also wants to focus investments in key regions of operation and technologies to increase profitability.

source: asahi.com