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Financial review
33
Non-operating Profit and loss
Non-operating income in fiscal 1998 was ¥25.5 billion, a 1.3% in-
crease over the previous year. Non-operating expenses increased
by 3.0% to ¥85.6 billion, however, resulting in an ordinary loss of
¥4.2 billion.
Extraordinary items
Extraordinary gain represented by gain on sales or disposal of
property, plant and equipment totaled ¥23.4 billion, which includ-
ed ¥25.6 billion from the sale of the Tokyo Plant Maruko factory.
Extraordinary loss included the ¥4.5 billion conciliatory settle-
ment by Mitsubishi Motors Manufacturing of America Inc., with
the Equal Employment Opportunities Committee. As a result, the
company turned last year's loss before income tax into a profit of
¥11.8 billion. Taxes of ¥7.7 billion resulted in a net profit for the
year of ¥5.7 billion, a major improvement on the net loss of
¥101.8 billion in fiscal 1997.
Segment performance (geographical)
In Japan, the company cut the ¥13.7 billion operating loss of fiscal
1997 to ¥7.8 billion. This significant improvement in performance
stemmed from cost reductions, foreign exchange gains, and im-
proved passenger car income, and was achieved despite a major
deterioration in truck and bus income resulting from the sharp
drop in total demand.
In North America, operating profit was ¥39.4 billion, a ¥26.4
billion improvement on the year before. This was the result of re-
duced production costs for the new Galant model and of reduc-
tions in selling and administrative expenses, which included the
employment of marketing strategies that did not use cash incen-
tives.
In Europe, operating profit was¥3.7 billion, a major improve-
ment on the ¥11.4 billion loss of the previous year. This was the
result of increased sales volume, and was achieved despite in-
creased selling and administrative costs linked to greater competi-
tion.
In Asia, operating loss was ¥3.7 billion compared with a ¥600
million profit for the year before. This was due to the very sharp
decline in total demand seen in 1998.
In other regions, operating profit in Australia was ¥4.4 billion,
a 66.0% decrease on the previous year when operating profit had
increased sharply as a result of sales volume and favorable ex-
change rates.
12.6
14.08
Net income
Net income per share
12.7
13.84
11.6
12.59
-101.8
-110.49
'94FY '95 '96 '97 '98
5.7
6.15
(¥)(¥ billion)
0
5
10
15
–100 –100
0
5
10
15
Net income and net income per share
Operating income
(¥ billion)
Japan
North
America
Europe Asia Others
Corporate
and
eliminations
Consolidated
'97FY '98FY
-100
0
100
200
300
400
500
-137
78 130
394
-81
34
-6 -37
130
44
-49
46
-13
559
Japan
Net sales
(¥ billion)
North
America
Europe Asia Others
Corporate
and
eliminations
Consolidated
'97FY '98FY
0
1,000
-1,000
2,000
3,000
4,000
2,929 2,676
707 767
241 439
167 132 331 296
-640 -798
3,735 3,513