Mitsubishi reports another quarterly loss as Alliance unites
Mitsubishi has given its earnings report for the third fiscal quarter, posting an operating loss of 6.6billion yen ($NZ94m). This contrasts to the profit of 28.1b yen ($NZ400m) reported a year earlier.
Mitsubishi also dipped to a net loss of 14.4b yen ($NZ20m) from a positive net income of 17.3b yen ($NZ24.6m), marking its second straight quarter of net losses.
Mitsi’s chief financial officer, Koji Ikeya, said that low demand in key markets like Japan, China and Southeast Asia contributed to the poor results. The Japanese yen’s appreciation against the Thai baht, U.S. dollar and Euro didn’t help Mitsubishi either.
Operating profit margin is expected to drop to 1.2 per cent, from 4.4 per cent last year.
The Japanese carmaker is under pressure going into the new decade, with it and its Alliance partners, Renault and Nissan, all facing volatile markets as the turmoil following Carlos Ghosn’s arrest continues. Ikeya didn’t comment on any restructuring plans Mitsubishi may have to stem its spiralling profits but the leaders of Nissan, Mitsubishi and Renault met a day earlier to outline new strategies.
This comes after news emerged last month of Nissan sketching plans to potentially exit the Alliance. Now, all three companies have reiterated that the Alliance is “essential for strategic growth and [to] enhance competitiveness for each company,”
The Alliance said it will tighten its shared platform strategies, taking on a leader/follower model. This means one company will lead the Alliance for the development of one key technology, which will then be spread to the other members.
More details on the rehashed mid-term business plans should be released by May this year.