Mitsubishi Motors reported a challenging first quarter for FY2024, revealing a marked decline in key financial metrics compared to the same period last year. The company’s net sales dropped slightly by 1% to ¥627.5 billion, while operating profit fell by 21% to ¥35.5 billion, reflecting a decrease in operating margin from 7.1% to 5.7%.
The automotive giant’s ordinary profit plummeted by 31%, amounting to ¥42.4 billion, and net income saw a significant decrease of 38% to ¥29.5 billion. These results come as the company faces increasing procurement and shipping costs, as well as fluctuating exchange rates. Notably, Mitsubishi reported a ¥70.8 billion reduction in total assets and a drop of ¥112.2 billion in cash and deposits.
Despite these financial setbacks, the company maintained a stable sales volume globally, with slight gains in Europe and Oceania, offset by declines in North America and China. The ASEAN region showed a mix of results with steady sales in some markets but notable drops in others.
Looking ahead, Mitsubishi Motors is forecasting a modest 3% increase in net sales for the full FY2024, targeting ¥2,880 billion, although operating profit is expected to slightly decrease by 1% to ¥190 billion. The company aims to boost shareholder returns, projecting a year-end dividend increase from ¥10 to ¥15 per share.
This period of adjustment and strategic recalibration highlights the broader economic challenges and the company’s efforts to navigate a complex global market environment.
