Mitsubishi 2003 Annual Report Download - page 43

41 MITSUBISHI MOTORS CORPORATION
SEGMENTAL ANALYSIS
Business Segment Information
MMC and its consolidated subsidiaries divide operations into two business segments: Automobiles, which includes passenger
cars, truck and bus, and Financial Services.
✵Automobiles
Although passenger car sales in Japan declined by 50,000 units to 354,000 units, overseas unit sales increased as export
volumes grew, particularly to North America and Asia. Total sales in the Passenger Car Division increased by 6,000 units to
1,563,000 units in volume terms, and in value terms by 27.2% to ¥3,085.5 billion. Operating profit in this division increased
by 2.9 times to ¥115.8 billion. Sales in Japan of trucks and buses were on a par with the previous year at 65,000 units.
Overseas sales increased by 13.5% to 88,000 units. Although overall sales in the Truck & Bus Division advanced 6.4% to
¥724.3 billion, operating profit declined 9.5% to ¥8.6 billion, mainly as a result of start-up costs associated with the launch
of the new CANTER truck. Excluding the bridge period, Passenger Car Division sales rose 10.2% to ¥2,672.0 billion, while
operating profit amounted to ¥109.6 billion. On the same basis, Truck & Bus Division sales rose 5.1% to ¥715.3 billion,
generating operating profit of ¥8.8 billion.
✵Financial services
Primarily due to the write-off of sales finance receivables, revenues from financial services fell 21.3% to ¥78.1 billion. This
segment recorded an operating loss of ¥40.1 billion, a deterioration of ¥35.1 billion compared with the previous year.
Geographical Segment Information
The geographical segmental analysis given here is derived from results posted by specific regions, and the treatment differs
from the geographic segment presentation provided in the Notes to Consolidated Financial Statements.
In Japan, total MMC passenger car sales dropped by 50,000 units to 354,000 units, amid a broader decline in the market.
Sales in Japan declined by ¥74.1 billion to ¥547.7 billion, while operating profit declined by ¥6.3 billion to record a loss of ¥66.8
billion. MMC aims to post an operating profit on passenger car sales in Japan by the end of fiscal 2005 (the year ending March
2006).
In North America, vehicle sales surged 6.6% in volume terms to 360,000 units. Sales in North America rose 37.0% to ¥1,191.0
billion, which generated operating profit of ¥90.2 billion, a slight year-on-year decline. Excluding the bridge period, sales in
North America increased 13.6% to ¥987.6 billion, and operating profit rose 7.3% to ¥101.6 billion.
In Europe, vehicle sales decreased by 4.6% to 203,000 units. Sales in Europe rose 39.2% to ¥730.8 billion. This generated
an operating loss of ¥22.2 billion, although this still represented a significant improvement of ¥10.0 billion relative to the
previous year. Excluding the bridge period, sales in Europe increased 11.2% to ¥584.0 billion, producing an operating loss of
¥20.4 billion, a year-on-year improvement of ¥11.8 billion.
Sales volumes rose in Asia and the rest of the world, with Asia providing much of the growth. Sales in this segment recorded
a year-on-year gain of 37.2%, to ¥691.1 billion. This resulted in an increase in operating profit of 2.5 times to ¥73.0 billion. Exclud-
ing the bridge period, sales in this segment increased 22.4% to ¥616.9 billion, and operating profit rose 2.4 times to ¥69.6 billion.