Mitsubishi 2002 Annual Report Download - page 38

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36
OPERATIONAL REVIEW
In fiscal 2001, ended March 31, 2002, Mitsubishi Motors Corporation (MMC) recorded consolidated net sales of ¥3,200.7
billion. MMC reported operating profit of ¥40.2 billion and net income of ¥11.3 billion, its first profit since the year ended March
31, 1999. MMC thus surpassed the Turnaround Plan’s first-year goal of breaking even on the bottom line on a consolidated
basis in fiscal 2001, making a strong start toward creating a consistently profitable operating structure by the end of the three-
year plan. While MMC’s performance in fiscal 2001 highlights the speed at which the company is rebuilding, it is merely a first
step. MMC is committed to steadily improving earnings by stepping up the selection and concentration of resources. This calls
for more cost cutting and optimization of work processes.
NET SALES AND OPERATING INCOME
MMC recorded ¥3,200.7 billion in consolidated net sales in fiscal 2001, a year-on-year decrease of 2.3%, due mainly to lower
unit sales of passenger cars in Japan. However, operating profit was ¥40.2 billion, a reversal of ¥114.1 billion from the previous
year’s operating loss. This result reflected Group-wide efforts under the Turnaround Plan to return MMC to a growth trajectory
in which it can consistently generate earnings. Specific measures included far-reaching reforms to the company’s operating
structure and corporate culture. In terms of specific items, cost-cutting initiatives raised operating profit by ¥118.7 billion and
the weaker yen and other factors contributed ¥65.3 billion. Lower unit sales had a negative impact of ¥60.2 billion.
(Segment Information)
MMC has two business segments: Automobiles, which encompasses the manufacturing and sale of passenger cars, and
trucks and buses; and Financial Services.
Automobiles posted sales of ¥3,106.4 billion, 2.7% less than the previous year, and operating profit of ¥49.9 billion.
Financial Services, on the other hand, saw sales increase 5.7% to ¥99.3 billion due to higher retail unit sales of passenger
cars in the U.S. However, the segment posted an operating loss of ¥5.0 billion due to the application of FASB No.133, “Ac-
counting for Derivative Instruments and Hedging Activities,” in the U.S. and other factors.
UNIT SALES
(CONSOLIDATED BASIS)
Truck & Bus
Passenger Car
NET SALES
Truck & Bus
Passenger Car
OPERATING PROFIT
(LOSS)
Truck & Bus
Passenger Car
00 01
(FY)
0
1,000
2,000
3,000
4,000
(¥ billion)
00 01
(FY)
–100
–50
0
50
(¥ billion)
00 01
(FY)
0
500
1,000
1,500
2,000
(1,000 units)
MANAGEMENT’S DISCUSSION AND ANALYSIS