Stmt.re 2002 Business Results

RNS Number:3187K
Mitsubishi Motors Corporation
24 April 2003


Mitsubishi Motors Achieves Best Net Income in Company History in FY 2002

o   Strong overseas sales of more than 1.2 million units

o   Net sales and operating profit clearly above forecast

o  Turnaround progress ahead of schedule

Tokyo, April 24, 2003-Mitsubishi Motors Corporation (MMC) today announced its FY
2002 preliminary business results. It also notified about a change in the
accounting period of its consolidated overseas subsidiaries, which will
synchronize their group reporting cycle with the Japanese fiscal year. Final FY
2002 business results and further details of the turnaround progress will be
announced on May 26, 2003 together with an outlook for FY 2003.

I. FY 2002 Business Results Overview

This is the last financial year MMC will include the results for truck and bus
operations in its overall results due to the spin-off of its truck and bus
operations on January 6, 2003.

In its FY 2002 consolidated operations, MMC's preliminary net sales is at 3,962
billion yen. Even after neutralizing the effect of a change in accounting period
for the overseas subsidiaries, this figure represents a 10 percent increase over
the preceding year on the back of strong overseas sales.

Preliminary operating profit is 83 billion yen (207 percent of FY 2001),
ordinary income is 55 billion yen (464 percent of FY 2001), and net income is 38
billion yen (338 percent of FY 2001), the best result in company history.

"Despite a difficult market environment we managed to beat our earlier
forecast," said MMC President and CEO Rolf Eckrodt "On top of our significant
cost and efficiency improvements, MMC has increased net sales for the first time
since 1997 and returned to growth. The successful spin-off of our truck and bus
operations will enable MMC to focus on passenger cars to achieve further growth
and profit in the future."

By various ongoing initiatives and supported by the deconsolidation of its truck
& bus operations, MMC's gross interest bearing debt is now lowered to 1 trillion
yen, which can be broken down into 572 billion yen for automotive debt and 428
billion yen for financial services debt.

FY 2002 business results (estimates)

                                 Net Sales                Operating Profit      Ordinary Income              Net        
                               (billion yen)                (billion yen)         (billion yen)             Income
                                                                                                          (billion yen)
                              PC      T&B    Total       PC     T&B     Total  

FY 2002                     3,238     724    3,962       74       9        83              55                  38
(estimate) (A) 
FY 2001    (B)              2,520     681    3,201       31       9        40              12                  11

Change     (A-B)             +718     +43     +761      +43       0       +43             +43                 +27

FY 2002 (Nov forecast)      2,700     700    3,400       67      10        77              55                  38

Note on change in accounting period

Starting this year, MMC's consolidated overseas subsidiaries changed their
annual closing date from December 31 to March 31 in order to synchronize with
MMC's fiscal year reporting. This change will improve transparency and the
quality of MMC's group financial reporting FY 2002 figures for these companies
will thus include results for the last 15 months. The impact of this accounting
change on overall net sales is approximately 446 billion yen, with a negative
impact on profit, mainly due to the difficult North American market environment
in the first quarter of 2003 (Operating profit 10 billion yen, ordinary profit
12 billion yen and net income 6 billion yen).

II. FY 2002 Passenger Car Retail Sales Results by Region

In FY 2002, MMC's passenger car sales in overseas markets rose by 4.9 percent to
1.21 million units, the best result in the company's history. This figure does
not include the impact of the change in accounting period. Total passenger car
sales in FY 2002 rose to 1.56 million units.

Japan

Passenger car sales in Japan declined by 12.3 percent to 354,000 units in FY
2002. With the successful launch of the subcompact Colt, second half unit sales
amounted to 191,000 units, a 17.2 percent increase over the first half-year
period. The sales momentum picked up especially in March when 14,137 Colts were
sold, making March 2003 the company's best-ever sales month for any single MMC
product (excl. mini-cars). At the same time, the renovation of the domestic
sales network is proceeding at high speed including the integration of the
company's two different sales channels into a single one as of January 1, 2003.

Europe

Despite a generally weakening market, MMC European unit sales have stabilized
and amounted to 203,000 units during CY 2002. The discontinuation of low-profit,
low-volume models led to some sales decline, partially balanced by the
successful launch of the new Space Star. In the fast growing Eastern European
market, MMC increased its sales by 36.2 percent to 17,000 over the previous
year.


North America

In CY 2002, MMC continued its sales increase in the North American market for
the fourth consecutive year. North American sales rose 6.6 percent over the
previous year to the new record figure of 360,000 units. This expansion was
supported by additional sales in the Canadian market, which MMC entered in
September. Further growth is expected from the market entry into Mexico in
January 2003 as well as from the recent successful launch of the Lancer
Evolution VIII and the SUV Endeavor to the U.S. market.

In 2002, Mitsubishi Motor Credit of America suffered from a trend towards higher
than anticipated credit losses. Operational improvement countermeasures, such as
tightened credit policies and strengthened collection function, have already
been implemented. Necessary provisions to accommodate for higher credit losses
have already been incorporated in the preliminary FY 2002 result.

Asia and Rest of the World

MMC unit sales in these markets increased strongly by 7.3 percent to 646,000
units over the last 12 months through March 2003, another record figure for MMC
in this region. Sales benefited from a strengthened product line-up and an
economic recovery in many Asian markets. In March, MMC accelerated its sales
growth in China by launching the Pajero Sport-the first Mitsubishi-badged
vehicle to be manufactured locally-which is currently in production at Beijing
Jeep, an affiliate of DaimlerChrysler in China. Total sales of MMC derived
vehicles in China over the last 12 months amounted to 92,000 units.

Passenger car retail sales by region (1000 units)

                  Units 2002      Units 2001     Change in %

Japan                    354             404          -12.3%

Europe                   203             213           -4.6%

North America            360             338           +6.6%

Asia/RoW                 646             602           +7.3%

Total                  1,563           1,557           +0.5%

Note

Japan:                    April through March                    

Europe:                   January through December (Retail sales Q1 2003 49 
                          thousand)
 
North America:            January through December (Retail sales Q1 2003 76 
                          thousand)

Asia/RoW:                 April through March, except for the units sold by 
                          subsidiaries in Thailand, Philippines, Australia and 
                          New Zealand that are for January through December
 

For further information, please contact:

Toru Kawahata/Mitch Hayes 
Public Relations Department 
Mitsubishi Motors Corporation 
Ph: [phone]

Forecast Revision of FY02 Business Results
 
FY02 Business Results(Consolidated/Non-Consolidated) announced at Interim
Financial Results Announcement on November 12, 2002 is revised as follows.

*  FY02 Consolidated Business Results Estimates

                                           Net Sales     Ordinary Income      Net Income
Prior Estimates (A) 
(Announced on Nov 12, 02)             34,000 Oku yen         550 Oku yen     380 Oku yen

Revised Estimates (B)                 39,620 Oku yen         550 Oku yen     380 Oku yen
(Impacted amount by accounting 
period change)                       ( 4,460 Oku yen)      (-120 Oku yen)   (-60 Oku yen)

Increase & Decrease (B-A)              5,620 Oku yen                    -               -

   Rate of Change                              16.5%                    -               -

*  FY02 Non-Consolidated Business Results Estimates

                                           Net Sales     Ordinary Income     Net Income

Prior Estimates (A)                   19,000 Oku yen         320 Oku yen    -90 Oku yen
(Announced on Nov 12, 02)     

Revised Estimates (B)                 18,773 Oku yen         478 Oku yen    -26 Oku yen

Increase & Decrease (B-A)               -227 Oku yen         158 Oku yen     64 Oku yen

    Rate of Change                             -1 2%               49.4%          71.1%

(Reasons)

- Consolidated     MMC's overseas subsidiaries(excl.exception) FY2002 figures 
                   describe results for the last 15 months(Jan, 02 - Mar, 03) as 
                   they adjusted their accounting period to synchronize with MMC 
                   headquarters from this year.

- Non-Consolidated Ordinary income is expected to increase due mainly to 
                   exchange rate.

                   Net income is expected to change by posting appraisal loss
                   (approx 100 Oku) of securities because of market value drop 
                   on shares at term end and gain on sale of investments in 
                   securities. 

(Reference)

FY02 Financial Result Announcement is scheduled on May 26, Monday. FY03 Business 
Results Estimates is also announced on the same day.


                      This information is provided by RNS
            The company news service from the London Stock Exchange

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