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Mitsubishi Posts First North American Profit in 7 Years

Motor Trend logo Motor Trend 4/24/2015 Kelly Pleskot

Mitsubishi reversed seven straight years of Suzuki Borrows 45 Million to Leave" target="_blank">losses in North America by posting a $4.18 million operating profit this past fiscal year. Mazda also posted full-year gains, although it saw profits decline in the final quarter due to its reliance on exports and preparation for new products.

Mitsubishi Posts First North American Profit in 7 Years

Mitsubishi performed well on all accounts last fiscal year. On a consolidated basis, net income rose to $1.14 billion while revenue hit $18.22 billion. These numbers coincide with a 21-percent increase in North American sales, hitting 117,000 vehicles.

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Despite the progress last fiscal year, Mitsubishi expects earnings will slow for the brand new fiscal year ending March 31, 2016. Operating profit should decline 8 percent to $1.04 billion with income falling 15 percent to $835.9 million. Growing R&D expenses, falling sales in Japan and Southeast Asia, and foreign exchange losses are to thank for the declining forecast, reports Automotive News.

Foreign exchange losses have already taken a toll on Mazda, which saw its profits fall from January through March largely because of this problem. The automaker, which relies heavily on exports from Japan, saw operating profit fall 11 percent to $425.5 million and net income drop 53 percent to $228.2 million globally in the last quarter. Also contributing to Mazda's overall slowdown last quarter was a higher tax bill, marketing for new products like the Mazda2 and CX-3, and work at new assembly plants. These problems happened despite revenue increasing 12 percent globally and sales increasing 2.9 percent to 105,000 units in North America, Mazda's largest market. © Provided by MotorTrend

Mazda managed to set record results for the entire year despite its slump in the fourth quarter. Operating profit rose 11 percent to $1.70 billion while net income went up 17 percent to $1.33 billion. Revenue surged 13 percent to $25.36 billion, and global sales increased 5 percent to 1.397 million vehicles.

Source: Automotive News 1, 2

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