Mitsubishi Motors still hopeful of posting profit this year

 

Car sales in Malaysia, China, Indonesia and the Philippines are doing better than expected in the second quarter, says a top Mitsubishi executive

JAPANESE carmaker Mitsubishi Motors Corp is still hopeful it can be profitable this year, despite a global recession.

Vice corporate general manager for Asia and Asean, Ryujiro Kobashi, said the group is still bullish on the industry.

Global car sales have dropped by 30 per cent to 40 per cent in the first quarter of 2009 compared with the same quarter last year, as consumers were deterred by a slowing economy.

Kobashi told Business Times after a media preview of its new Mitsubishi Pajero Sport in Shah Alam, Selangor, recently that Mitsubishi Motors has been reducing its costs and is working on improving sales since last year.

"We are bullish on the prospects in Asia Pacific, including the Middle East, where the recovery is on the positive side as compared with other regions. The situation is different area by area. We are confident we can achieve our April, May and June car sales target," Kobashi said.

He declined to give numbers but said that car sales in Malaysia, China, Indonesia and the Philippines are doing better than expected in the second quarter.

"Our production level is recovering as compared to September and October last year. There is demand for our cars so sales are picking up. But we have stocks in several countries and will look at a couple of promotions to dispose of them," he said.

Despite a slower market, the Japanese automaker has forecast an operating profit of 30 billion yen, or US$310 million (RM1.09 billion), and net profit of 5 billion yen (RM179.5 million) for the financial year ending March 31 2010.

The group posted a net profit of US$304.8 million (RM1.07 billion) in 2008 compared to US$76.8 million (RM270.34 million) in the year before.

Kobashi said Mitsubishi Motors will not expand this year but will focus on strengthening its market share. In Malaysia, the group has a 1.4 per market share which it aims to maintain this year.