Mitsubishi 2008 Annual Report Download - page 44

42 mitsubishi motors corporation annual report 2008
Financial Results and Discussion
(Thousand units) (¥ billion)
■
Net Sales
■
Operating Margin
07
06
05
04
03
1,360
1,230
1,344
1,312
1,527
07
06
05
04
03
2,682.1
2,202.9
4.0％
1.8％
0.3％2,120.1
2,122.6
2,519.4
Operational Review
In fiscal year 2007, although the Japanese economy was buoyed by
the strength of newly emerging economies and resource-rich
countries such as Brazil, Russia, India and China, there was minimal
economic expansion. This was due to turmoil in financial markets
stemming from the sub-prime loan crisis in the United States and
drastic increases in the price of raw materials such as crude oil.
Despite these challenging conditions, Mitsubishi Motors
Corporation and its group of related companies (hereafter “MMC”
or “the company”) were able to exceed previous fiscal-year results
in all areas including sales, operating income, ordinary income and
net income. This was due to an increased number of units sold
outside Japan, as well as a favorable model mix and the effect of the
yen’s depreciation in terms of average exchange rates for the
fiscal year.
Results of Operations
Retail Sales Volume
In terms of retail sales volume, retail volume in Japan decreased
year on year, reflecting a contraction of 4.8% in the Japanese
market. However, in overseas markets, global models such as the
new
Pajero , Outlander and Lancer models launched (regionally)
since the second half of the previous fiscal year contributed to sales,
resulting in higher retail sales volume in all regions, including North
America, Europe, Asia and other areas. As a result, the overseas
consolidated retail volume reached 1,141,000 units, an increase of
158,000 units, or 16.0%, from the previous fiscal year. Consolidated
retail volume worldwide was 1,360,000 units, an increase of 130,000
units, or 10.6% year on year.
In Japan, retail sales dropped 28,000 units, or 11.3%, year on
year, to 219,000 units. MMC’s sales of registered vehicles rose 9.9%
year on year due largely to the new
Delica D:5 minivan, Galant
Fortis
, and Lancer Evolution X . Total market demand for registered
vehicles decreased 3.5% year on year. However, sales of minicars
declined by 20.7% compared to the previous fiscal year. Total
market demand for minicars decreased 6.8%.
In North America, the introduction of new
Lancer and
Outlander models helped sales to grow 8,000 units from the
previous fiscal year (up 4.7%), to 172,000 units.
In Europe, Russia and Ukraine propped up the market, while
Germany and the U.K. were down. As a result, the overall volume
was 341,000 units, up 59,000 units, or 20.6%, year on year.
In Asia and other areas, in addition to steady growth in the
Latin American, the Middle East and African regions, the increased
import of finished vehicles in China and Australia, and increased
sales in ASEAN countries including Indonesia, where the market is
recovering, helped to raise sales. Total vehicles sold in these areas
increased by 91,000 units, or 17.1% over the previous fiscal year, to
628,000 vehicles.
Retail Sales Net Sales/Operating Margin
(FY) (FY)