Rebounding Mitsubishi expects North American profitability to surge

Meanwhile, introduction of the Indonesia-built Xpander utility vehicle to Mexico is helping shore up business in another critical North American market, the company said.

Mitsubishi, which recently kicked off a new mid-term business plan targeting global sales of 1.1 million units, laid out the vision after it reported rebounding earnings in the latest quarter.

Operating profit climbed 17 percent to 36.8 billion yen ($277.5 million) in the three months ended March 31, while net income rose 29 percent to 37.9 billion yen ($285.8 million).

Global wholesale deliveries declined 8.7 percent to 264,000 vehicles in the quarter, with slumping volume in North America, Europe and China contributing to the downturn.

Collapsing sales in China, where deliveries fell by half in the three-month period, have forced Mitsubishi to suspend production there until the end of May at least.

For the full fiscal year ended March 31, operating profit more than doubled to 190.5 billion yen ($1.44 billion), up from 87.3 billion yen ($658.4 million) in the year before.

Net income also more doubled to 168.7 billion yen ($1.27 billion), from 74.0 billion yen ($558.1 million) a year earlier.

Worldwide retail sales declined 11 percent to 834,000 vehicles for the full fiscal year, from 937,000 the year before. North American sales declined 15 percent to 133,00 vehicles. Sales in Europe, plunged by 49 percent to 61,000 units, and China volume fell 41 percent to 48,000.

Despite falling sales, fiscal-year results were boosted by an improved mix of higher-margin vehicles, reduced incentives and foreign exchange rate windfall gains, Mitsubishi said.

Looking ahead to the current fiscal year ending March 31, 2024, Mitsubishi trimmed its profit outlook. Even though volume is expected to increase, Mitsubishi said economic uncertainty, rising costs and unhelpful foreign exchange rates would hurt the bottom line.

Mitsubishi expects operating profit to decline 21 percent to 150.0 billion yen ($1.13 billion) for the full fiscal year, as net income slides 41 percent to 100.0 billion yen ($754.2 million).

Worldwide retail sales are expected to increase 10 percent to 917,000 vehicles.

Mitsubishi predicts that North American sales will increase 21 percent to 161,000 vehicles this fiscal year. Sales in Europe are seen advancing 33 percent to 81,000 units.

— Naoto Okamura contributed to this report.