Mitsubishi Motors Registered a Growth of 53% in Profit
The fourth biggest auto maker of Japan, Mitsubishi Motors reported a growth of 53.2 percent in the net profit for the fiscal year 2011-12 despite the tumbled figures because of the strong yen in the last-quarter. Mitsubishi Motors earned 23.9 billion yen in FY 2011-12 against 15.6 billion yen in FY 2010-11. The operating profit witnessed a growth of 58.1 percent to 63.7 billion yen as the sales dropped by 1.2 percent to 1.81 trillion yen last year when Japan was extensively destructed by tsunami.
The disaster had hit hard the auto manufacturers and had forced them to close down their plants. The situation worsened after the flood in Thailand which further hampered the operation in the South East Asian car markets. Mitsubishi stated that the entire automotive industry has had to face and operate in a difficult environment. Earlier this year, Mitsubishi indicated toward ceasing the manufacturing in the debt-hit continent of Europe by the end of this year as it believes that the operating environment has become very difficult. This Japanese auto giant also mentioned that on account of the improvement in the company’s model mix, reduction in materials’ and other cost, the company has managed a good rise in the annual profit.
The company registered a profit of 10.3 billion yen from January to March 2012 which was 42 percent less than the previous year’s figure of 17.8 billion yen. According to the company the main reason behind this fall is the strength of the yen which was at its highest late last year; this made the Japanese products to cost more in the foreign market and thus resulted in lower value of foreign earnings. This auto maker who has manufactured the Mitsubishi Electric Car i-MiEV – the first commercially developed electric car - has also predict a net profit of 25 billion yen on the sales of 1.98 trillion yen in the fiscal year 2012-13.
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