Mitsubishi 2009 Annual Report Download - page 20

0 200
09
08
07
06
360.0
631.7
931.6
662.8
400 800 1,000
600
(Forecast)
–10 0
09
08
07
06
5.3
10 50 70 80
79.7
42.6
–2.0
30 4020 60
(Forecast)
0 100
09
08
07
06
213
272
341
282
150 350
25050 200 300
(Forecast)
Net Sales
Operating Income (Loss)
Retail Sales
(FY)
(FY)
(FY)
(¥ billion)
(¥ billion)
(Thousand units)
Fiscal Year 2008 Performance
Retail Sales
Retail sales fell 20% year on year to 272,000 units. In addition to
lower retail sales in Western Europe, where aggregate demand
remains weak, retail sales dropped sharply in the second half of
the fiscal year in Russia, where demand had been strong. (Retail
sales were down 10% year on year at 96,000 units in Russia).
Net Sales and Operating Income
Net sales in Europe totaled ¥631.7 billion, down 32% year on
year due to lower sales volume and the yen’s appreciation.
Although MMC implemented emergency measures to reduce
expenses, major impacts from lower sales and the stronger yen
caused operating income in Europe to worsen by ¥74.4 billion
year on year to ¥5.3 billion.
Outlook for Fiscal Year 2009
Retail Sales
In fiscal year 2009, MMC is targeting retail sales of 213,000 units,
down 22% year on year. This target factors in challenging market
conditions in various regions and countries, including Western
Europe, Russia, and the Ukraine. European governments such as
Germany have put in place programs to support purchases of
small, fuel-efficient models. The Colt series is at the heart of
MMC’s efforts to boost sales in response to these programs.
Net Sales and Operating Income (Loss)
MMC is targeting net sales of ¥360.0 billion, a decline of 43%
year on year, factoring in lower sales and the appreciation of
the yen. MMC is taking steps to reduce materials costs and
other expenses, including personnel costs and selling
expenses, including advertising costs. However, based on
projections for lower sales and the impact of the strong yen,
MMC expects operating income to deteriorate ¥7.3 billion from
fiscal year 2008 to a loss of ¥2.0 billion.
Despite a temporary downturn in demand, Russia and the Ukraine remain promising markets. MMC
is introducing products that conform to individual governmental policies in support of small, fuel-
efficient models as part of an overall drive to expand sales opportunities.
Europe
• Russia and the Ukraine
Russia and the Ukraine Remain Key Markets
The formerly fast-growing Russian and Ukrainian markets
cooled suddenly in the second half of fiscal year 2008 along
with the downturn in the global economy. However, for the
following reasons, we continue to regard these countries as key
markets: because these markets exceed a certain size; because
demand can be expected to expand in the future; and because
MMC enjoys strong brand recognition in both Russia and the
Ukraine. MMC continues to implement initiatives from a
medium- and long-term perspective while carefully monitoring
demand trends.
• Russia
Construction of a New Production Facility Begun
In MMC’s local vehicle production venture with PSA Peugeot
Citroën, MMC held a groundbreaking ceremony for a vehicle
assembly plant in June 2008. The plant is a strategic base for
the European market and preparations are under way for the
targeted start of production in 2012.
The Colt ClearTec features an Automatic Stop & Go function that enables low
CO2 emissions.
18 MITSUBISHI MOTORS CORPORATION Annual Report 2009