OREANDA-NEWS. June 14, 2011.  1. Positioning for FY2011FY2011 marks the first year of the "Jump 2013" mid-term business plan announced by MMC in January this year that covers the FY2011 to FY2013 period. Regarding "Jump 2013," MMC President Osamu Masuko declared "On top of the impact of the Great East Japan Earthquake in March, we must conduct our business operations facing several other obstacles including the strong yen and sharp increases in raw material prices. Despite this, MMC has decided to leave its targets and strategies set out in "Jump 2013" unchanged, and we will continue working with unyielding resolve to achieve our goal of a 'Growth and Leap Forward.'"

In the aftermath of the Great East Japan Earthquake there was, for a time, concern that MMC's production would be seriously disrupted. However, those initial concerns have been dispelled and MMC expects to achieve its pre-earthquake full-year domestic production plans, with output levels coming in at around 90 percent of plan for the first half and exceeding plan for the second half of FY2011. As for its overseas production, MMC expects both first and second half output will exceed its pre-earthquake production plan.
 
2 . Forecasts for FY2011 (1) Sales volume
MMC forecasts a global sales volume of 1,075,000 vehicles for FY 2011, a 9 percent or 88,000 unit increase over the previous fiscal year. For its domestic market MMC expects to achieve a unit sales volume on a level similar to FY2010 despite the end of eco-car subsidies as well as an uncertain near-future economic environment. However, for its overseas markets, MMC expects an increase in sales volume over the previous fiscal year, driven by growth mainly in emerging markets, by a recovery in demand in countries such as the United States, among others, led by strong sales of the new compact SUV that MMC started to phase into its global markets last fiscal year. The breakdown by region is as follows:
Japan: 164,000 units, no change over fiscal 2010
North America: 108,000 units, a 15 percent year-on-year increase of 14,000 units
Europe: 227,000 units, a 4 percent year-on-year increase of 9,000 units
Asia & Other Regions: 576,000 units, a 13 percent year-on-year increase of 65,000 units

(2) Full-year Financial Forecast for FY2011
For FY2011 MMC expects the strong yen, rises in raw material prices and other external profit-impacting factors to be compounded by increases in development and other spending essential to accomplishing the various targets set out in "Jump 2013." However MMC will work to boost both sales and profits by increasing unit sales volume in its buoyant overseas markets and through further efforts to cut material and other costs. On this basis, MMC makes the following forecasts for FY2011:
Net sales: 1.95 trillion yen, a 7 percent year-on-year increase of 121.5 billion yen
Operating profit: 50 billion yen, a 24 percent year-on-year increase of 9.7 billion yen
Ordinary profit: 40 billion yen, a 3 percent year-on-year increase of 1.1 billion yen
Net profit: 20 billion yen, a 28 percent year-on-year increase of 4.4 billion yen.