2023-07-24 04:46:03
Tokyo (awp/afp) – Mitsubishi Motors, the third member of the Renault-Nissan alliance, revised its 2023/24 earnings forecast slightly higher on Monday, thanks in particular to a less significant negative effect from exchange rates than initially expected, once morest a backdrop of the persistent weakness of the yen.
The group is also a little more optimistic than before regarding the improvement of its selling prices, particularly in North America and Southeast Asia, its preferred area.
The three-diamond brand now anticipates an annual net profit of 110 billion yen (671 million Swiss francs on the day), or 10 billion yen more than when it initially forecast in May. However, this would amount to a fall of 35% over one year.
The group anticipates an annual operating profit of 170 billion yen (+20 billion yen compared to its May outlook), a drop of 11% over one year.
Its annual sales, on the other hand, should increase by 13% (compared to 10% in its previous forecast), to 2,780 billion yen.
In its first quarter (April-June), Mitsubishi Motors generated a net profit of 47.9 billion yen (+24% over one year). Its operating profit jumped by 47% and its sales by 20%.
However, the group’s situation is increasingly problematic in China, where its sales have completely melted in recent years, due in particular to the profound changes in the Chinese automotive market, which is increasingly dominated by local brands and very connected to electric.
Mitsubishi Motors only sold 7,000 vehicles in China in the first quarter. GMMC, its local joint venture with the Chinese manufacturer GAC, recently suspended production sine die to begin a major restructuring.
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