Mitsubishi 2001 Annual Report Download - page 46

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[44] MITSUBISHI MOTORS CORPORATION Annual Report 2001
(Segment Information by Geographical Region)
Sales in Japan were ¥2,437.0 billion, down 0.9% from the previous fiscal year. This was due in large part
to a decline in unit car sales in the country generally. MMC recorded an operating loss of ¥61.2 billion,
as compared to operating income of ¥2.8 billion in fiscal 1999.
Sales in North America rose 23.8% to ¥911.2 billion, thanks to higher unit sales. Operating income
was ¥33.6 billion for the period in review, an increase of ¥16.0 billion over fiscal 1999.
Sales in Europe dropped 21.6% to ¥395.3 billion, due to shrinking sales. European operations posted
an operating loss of ¥30.3 billion, compared with an operating loss of ¥1.8 billion for the previous
fiscal year.
Sales in Asia rose 9.4% to ¥152.9 billion due to increased passenger car sales, which rose on the back
of an economic upturn in Southeast Asia. Adverse exchange rates and other factors, however, resulted
in an operating loss of ¥1.9 billion, compared with operating income of ¥3.8 billion in fiscal 1999.
Other Income and Expenses, and Net Loss
MMC’s interest expense during the fiscal year in review shrank to ¥35.8 billion, a drop of ¥9.2 billion
from the previous year, due to a decrease in interest-bearing debt.
MMC, as stated earlier, recorded non-recurring losses of ¥313.3 billion during fiscal 2000. The main
components were as follows:
First, the introduction of a new accounting standard resulted in a lump-sum write-off of retirement-
benefit obligations of ¥128.4 billion. Further, MMC took charges amounting to ¥105.8 billion for
restructuring under the Turnaround Plan. This amount includes extra fixed expenses of ¥59.3 billion
expected from production cutbacks at Netherlands Car B.V. in Europe; production restructuring charges
of ¥12 billion, including expenses associated with the planned closures of the Oye and Kyoto plants in
Japan; expenses of ¥7.7 billion from the discontinuation of unprofitable models; and reserves for early
retirement benefits and others.
Additionally, MMC expended an additional ¥50.7 billion for the Mitsubishi Safety Support Program
and the handling of claims, and recorded ¥28.5 billion in losses on asset revaluation and other.
All in all, MMC posted a net loss of ¥278.1 billion, including minority interests.
Financial Position
(Assets)
Trade notes and accounts receivable decreased by ¥72.4 billion due to the drop in sales, while deferred
tax assets increased by ¥77.5 billion. Fixed assets also expanded by ¥211.5 billion mainly due to the
adoption of new accounting standards for financial instruments, resulting in a ¥96.2 billion increase
in investment in securities and a ¥92.9 billion increase in investment and other assets.