Mitsubishi 2004 Annual Report Download - page 27

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25
In addition, net income deteriorated ¥252.8 billion to a net loss of ¥215.4 billion. Excluding the impact of the
change in accounting period at consolidated overseas subsidiaries, totaling losses of ¥6.5 billion, profits deteriorated
¥259.3 billion. Included were an extraordinary gain on sales of investment in securities of ¥39.4 billion and an extraor-
dinary loss of ¥138.0 billion resulting from the reversal of deferred tax assets.
* Spin-off of the truck and bus business:
The Company spun off its truck and bus business, transferring it to Mitsubishi Fuso Truck and Bus Corporation (Mitsubishi Fuso), a new wholly owned subsidiary
established by the Company, in January 2003.
The Company transferred 58% of the stocks of Mitsubishi Fuso, which were held by the Company, to DaimlerChrysler AG and ten Mitsubishi group companies. As
a result, the new stockholdings in Mitsubishi Fuso are DaimlerChrysler (43%), the Company (42%) and Mitsubishi group companies (15%).
The Company subsequently sold a further 22% stake in Mitsubishi Fuso to DaimlerChrysler in March 2004.
The truck and bus business is included in the income statement of the consolidated financial statements for the previous fiscal year. However, on the balance sheet,
Mitsubishi Fuso was an equity-method company as of the end of the fiscal year, and the truck and bus business was included in the investment securities account.
Therefore, the assets and liabilities of the truck and bus business were not reflected in the assets and liabilities sections of the balance sheet.
** Note on change in accounting period:
Starting in FY2002, MMC’s consolidated overseas subsidiaries changed their annual closing date from December 31 to March 31 to match that of MMC’ and domes-
tic consolidated subsidiaries. The purpose is to improve transparency and the quality of MMC’s group financial reporting. FY 2002 figures for these companies include
results for 15 months.
SEGMENT ANALYSIS
Business Segment Information
MMC and its consolidated subsidiaries divide operations into two business segments: Automobiles and Financial Services.
Automobiles
In its automobiles business, sales increased steadily in Japan, Europe, Asia and other regions. In the United States, on
the other hand, sales of automobiles fell dramatically, reflecting the tightening of credit assessment standards by the
Company’s financial services arm and intense industry competition. As a result, sales declined in value terms 35.9% to
¥2,443.3 billion. Excluding the impact of the fiscal 2002 spin-off of the Company’s truck and bus business (¥715.3
billion) and the absence of one-off figures in fiscal 2002 attributed to the change in accounting period at consolidated
overseas subsidiaries (¥422.4 billion), sales in this segment fell 8.6% year on year.
01
(FY)
02 03
4,000
3,000
2,000
1,000
001
(FY)
02 03
150
100
50
0
-50
NET SALES
(¥ billion)
OPERATING PROFIT
(LOSS)
(¥ billion)
01
(FY)
02 03
100
80
60
40
20
001
(FY)
02 03
25
0
-25
-50
NET SALES
(¥ billion)
OPERATING PROFIT
(LOSS)
(¥ billion)
AUTOMOBILES FINANCIAL SERVICES