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0200
10
09
08
07
490.0 (Forecast)
269.2
631.7
931.6
800 1,000400 600
–20 0
10
09
08
07
–8.0 (Forecast)
0.8
5.3
79.7
60 8020 40
050
10
09
08
07
196 (Forecast)
169
272
341
250 300 350100 150 200
Europe
Fiscal Year 2009 Performance
Retail Sales
Retail sales fell 103,000 units, or 38%, year on year to 169,000 units. Overall,
demand was slow to recover in European countries, and sluggishness was
particularly marked in Russia and the Ukraine, where MMC’s retail sales
dropped sharply, with Russia down 57,000 units, or 60%, year on year to
39,000 units, and in the Ukraine down 24,000 units, or 72%, year on year to
10,000 units. In Western Europe, although the region felt benefits from
governmental demand stimulus measures in Germany and elsewhere, there
was a negative rebound following the expiration of those incentives, thus
retail sales declined year on year. In Central Europe retail sales declined year
on year as demand in general continued to be sluggish even though markets
were strong in Poland and elsewhere.
Net Sales and Operating Income
[Decreased sales, reduced income]
Net sales in Europe totaled ¥269.2 billion, down ¥362.5 billion, or 57%, year
on year mainly due to lower retail sales and the appreciation of the yen.
Although the drop in retail sales significantly reduced operating income,
MMC worked to mitigate this by reducing costs such as selling expenses and
materials costs. As a result, operating income in Europe worsened by ¥4.5
billion year on year to ¥0.8 billion.
Outlook for Fiscal Year 2010
Retail Sales
In fiscal year 2010, MMC is targeting retail sales of 196,000 units, up 27,000
units, or 16%, year on year. In some European countries, aggregate demand
is expected to decrease due to the reduction or termination of governmental
demand stimulus policies in various European countries. However, retail sales
are projected to increase through the introduction of the ASX in the growing
crossover category. In Russia, where sales are recovering, assembly of the
Outlander at a Russian plant launched as a joint venture with PSA Peugeot
Citroën will commence from September.
Net Sales and Operating Income (Loss)
[Increased in sales, income shift to loss]
MMC is targeting net sales of ¥490.0 billion, a rise of ¥220.8 billion, or 82%,
year on year, due to higher retail sales. Although increased retail sales are a
factor in raising operating income, based mainly on projections for the
impact of a strong yen and increased development expenses, MMC expects
operating income to deteriorate ¥8.8 billion from fiscal year 2009 to a loss of
¥8.0 billion.
Net Sales
Operating Income (Loss)
Retail Sales
(FY)
(FY)
(FY)
(¥ billion)
(¥ billion)
(Thousand
units)
We aim to increase unit sales amid waning demand in Western Europe by introducing the
new ASX compact crossover. In Russia, where demand is recovering, we will commence
assembly of the Outlander.
Hiroshi Harunari
Managing Director, Head Officer of the Headquarters, Overseas Operations Group Headquarters A,
Corporate General Manager of Overseas Management Office, In Charge of Overseas Operations Group B
18
MITSUBISHI MOTORS CORPORATION Annual Report 2010