Mitsubishi 2000 Annual Report Download - page 4

We're connected !
We're connected!
2
I am pleased to report that the determined and fo-
cused efforts of everyone at MMC and group compa-
nies, as well as the unwavering support of our share-
holders and customers, enabled us to meet the ma-
jority of the restructuring and reform targets in the
RM2001 management plan initiated in 1998.
The Company of which you are part owner is
now leaner, more responsive, more efficient, more
competitive and less burdened by debt −this the re-
sult of the restructuring and other reforms. We are
ready to reach further, faster, and more competitively
in both passenger car and
commercial vehicle segments
−aided in this by equity and
operating alliances formed re-
cently with two powerful allies:
DaimlerChrysler and AB Volvo.
In other words, we are now in a
position to seek the growth that
will add value to the Company,
create added value for our
shareholders and employees, and deliver enhanced
value to our customers.
If there is one fact of life I have been keenly
aware of over the last two years, it is that the auto
business is a moving target! We must constantly seek
to transform and evolve into a stronger, more com-
petitive enterprise. We simply cannot afford to stand
still or fail to seek greater efficiencies.
The paradox I face as I write this letter to you to-
day is that of MMC having achieved so much this
past year, only for those achievements to fail to be
fully reflected in the bottom line. Although thwarted
in our task of generating the acceptable level of net
profit and restoration of dividend that were targets
for fiscal 1999, I can confidently say that we have
turned the corner and now are well on the road to re-
covery that we embarked upon three years ago. The
reforms are kicking in; "making it work, making it
pay." Now we can start to harvest the rewards as we
complete our metamorphosis into a stronger, healthi-
er and so much more competitive player.
The juice is there. The partners are there. The in-
formation and communications infrastructure so vital
today is there and being upgraded all the time. Yes, I
can report to you with confidence that "we're con-
nected!"
In fiscal 1999, the continuing lethargy in the
Japanese economy saw firm minicar sales countered
by depressed sales in other passenger car categories,
while truck and bus sales
plunged to historical lows.
Exports were lower, owing both
to increased local production at
overseas facilities and to the
stronger Yen.
MMC increased its sales
volume in North America,
Europe and Asia, while concert-
ed cost reduction and other
group-wide efforts exceeded expectations in improv-
ing the financial standing of MMC companies. A
drop in export shipments to markets in the Middle
East and to Central and South America and the
strengthening Yen cast a shadow on these bright
spots.
In its consolidated operations, MMC reported
sales income of ¥3,335 billion, 5.1% down over fis-
cal 1998, owing primarily to a small drop in sales
volume and to the stronger Yen. The Company re-
ported an operating profit of ¥22.5 billion, an ordi-
nary loss of ¥3.8 billion, and a net loss for the year
of ¥23.3 billion; all down over the previous year.
Cash flows from operating activities were up, while
cash flows from acquisition or disposal of tangible
assets and other investing activities decreased. Cash
flows relating to financial service activities were
down. Total cash flows decreased by ¥33.7 billion.