TOKYO (dpa-AFX) - Japanese automaker Mitsubishi Motors Corp. (MMTOF.PK) on Friday raised its fiscal 2011 earnings forecast on anticipated decline in expenses, while trimmed sales outlook due to lower sales volume. Further, the company announced a delay in posting gains from the sale of investment securities.
For the year ended March 31, Mitsubishi now expects net income of 23.9 billion yen or 4.32 yen per share, higher than its earlier outlook of 20 billion yen or 3.61 yen per share. This is higher than the 15.62 billion yen net income or 2.82 yen per share generated in the previous year.
The company said it will post an expected extraordinary loss of 12.3 billion yen in its fiscal 2011 related to its decision to discontinue production at Netherlands Car, B.V., (NedCar) its European production facility, at the end of calendar year 2012.
The company now projects full-year operating income of 63.70 billion yen, a growth of 27.4 percent from the previous outlook of 50 billion yen. Last year's operating income was 40.27 billion yen.
The company said its revision of income forecast was due to reductions in sales expenses and other costs, despite a drop in sales volume.
Meanwhile, net sales for the year is currently expected to be 1.81 trillion yen, a 0.7 percent decline from its prior estimate of 1.82 trillion yen. In the previous year, the company's sales were 1.83 trillion yen.
Further, Mitsubishi said it now expects to post an expected gain on the sale of investment securities of about 10.5 billion yen in fiscal 2012. Earlier, the company expected to record the gain in fiscal 2011, but the sale of stock in GAC Changfeng Motor Co. Ltd. is still in the process.
In a statement on Thursday, Mitsubishi said it has started full production of its all-new Mirage 'global compact car' at Thailand's Laem Chabang Plant.
According to the company, the car is designed to satisfy demand for an entry-level car in fast-growing emerging markets as well as demand for eco-conscious models in advanced markets.
Copyright RTT News/dpa-AFX
© 2012 AFX News
