Mitsubishi 2010 Annual Report Download - page 32

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0
09
08
07
06
05
960
1,066
1,360
1,230
1,344
500 1,500
1,000
0
09
08
07
06
05
1,445.6
1,973.6
2,682.1
2,202.9
2,120.1
1,000 3,000
2,000
26
4
1.0
0.2
4.0
1.8
0.3
0
Operational Review
In fiscal year 2009 ended March 31, 2010, the global econ-
omy saw the sharp downturn triggered by the financial crisis
subside, and headed toward a gradual recovery after putting
the worst behind it. This recovery was supported by eco-
nomic stimulus measures implemented by various countries.
Despite these positive developments, a strong overall eco-
nomic recovery remains a distant prospect. In particular, with
Japan’s economic recovery being very dependent on exter-
nal demand, the foreign exchange market trended towards
an appreciation of the yen. In addition, with wage and
employment conditions slow to recover amid a deflationary
environment, domestic demand was unable to drive eco-
nomic growth, and business conditions remained harsh.
In this business environment, in the second year of its
Step Up 2010 mid-term business plan, MMC worked to bol-
ster its strengths and secure steady profits by making earnest
efforts to return domestic operations to profitability, stabiliz-
ing North American businesses, building a more market-
responsive production structure, and enhancing
environmental technologies. Another priority was to continue
implementing thorough cost reductions amid a continued
severe business environment.
As a result, in terms of consolidated business perfor-
mance in fiscal year 2009, despite a drop in net sales MMC
achieved a stronger year-on-year performance in all major
Financial Results and Discussion
(FY) (FY)
(Thousand
units)
(¥ billion)
(%)
Retail Sales Net Sales/Operating Margin
income statement earnings items, including operating
income, ordinary income and net income, and achieved its
goal of net profitability.
Results of Operations
Retail Sales Volume
MMC’s global retail sales in fiscal year 2009 came to 960,000
units, down 106,000 units, or 10% year on year.
Regional sales in Japan came to 171,000 units, up 3,000
units, or 1% year on year, reflecting a boost in overall
demand throughout the year from the government’s eco-car
tax reductions and incentives and the February 2010 launch
of the new RVR compact crossover.
North American sales came to 88,000 units, down 31,000
units, or 26% year on year due to declines in the United
States and Mexico, which offset gains in Canada.
In Europe, demand was slow to recover on the whole. In
particular, there was a sharp downturn in market conditions in
Russia and the Ukraine, resulting in regional sales of 169,000
units, a drop of 103,000 units, or 38% year on year.
In Asia and Other Regions, regional sales came to
532,000 units, up 25,000 units, or 5% year on year. This was
despite decreases in Central and South America and in the
Middle East and reflected a more than 60% improvement in
China and major rises in such markets as Taiwan, Thailand,
and the Philippines.
n Net Sales Operating Margin (%)
30
MITSUBISHI MOTORS CORPORATION Annual Report 2010