The Japanese automotive company Mitsubishi Motor Corp. has seen struggling in the recent quarter as reports of weaker yen yield less profit from the company and domestic sales dropping makes the quarter a terrible one for the company. The company’s sales also received a backlash from the mileage scandal; Asian markets are notably weaker than expected.
Mitsubishi is the sixth-largest automaker posted on their quarterly report a total operating profit of 8.4 billion yen or $73.58 million from the duration of October to December, a surprising setback from the analysts’ expectation of 9.36 billion yen. Net income is also considerably down to 6.3 billion yen or $54 million, down 18.3 percent on a year on year basis, whilst recovering from the staggering first half loss of 31.6 billion yen or nearly $28 million. Revenues were also caught in the turbulence, dropping 19 percent at 476.9 billion yen or $4.09 billion as global retail sales sheepishly came in dropping 11 percent at 237,000 vehicles in the latest fiscal quarter.
Domestic Sales Falls, Neighboring Country Follows
The automotive maker’s domestic sales are down 24 percent in the recent quarter, while sales from the Asian market are also down significantly. All were worsened from last year’s fuel-economy rating scandal; the scandal made Nissan Motor Co. the governing power at 34 percent stake in its smaller Japanese rival last autumn. Vice President and CFO Koji Ikeya said that are already doing their best to adapt to some streamlined management strategies from its new partner, which made positive progress in the last quarter.
U.S. Sales Down
The automotive giant also loses a tantamount from its North American market; sales were at 22,000 units from 23,000 a year ago. Regional volume were unchanged at 32,000 vehicles in the past three months, Ikeya mentioned that the company is still familiarizing its way to the uncertainty of trade and tax policy changes under the new administration spearheaded by President Donald Trump, but there is no decision to withdraw from the market, he said, but sales are planned to increase in the future.
“The Trump administration’s policy is a difficult issue,” and “We are trying to increase our top-line in the Nissan Group, and the U.S. is a very important market. So we will consider various ways to make a recovery there.” Ikeya said.
Mitsubishi also lost in its Euro market, operating loss is at 3.6 billion or $30.8 million in the recent quarter, as opposed to last year’s 7.1 billion yen or $60.8 million. European sales 21 percent at 42,000 units sold. A silver lining for the company is the result of recent news that unveiled escalating sales at 103,000 units from 97,000 boosted by Outlander crossover.
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