Mitsubishi still on track

MITSUBISHI Australia has hosed down another media report questioning its on-going viability.

The Melbourne Herald-Sun yesterday quoted an auditor’s statement attached to Mitsubishi Motor Australia Limited’s latest financial results saying “there is significant uncertainty whether the company will be able to continue as a going concern”.

However, MMAL public affairs manager Lenore Fletcher said that this statement has been attached to all Mitsubishi Motor Corp financial reports for a number of years since its well-publicised near-collapse first surfaced (which has since been largely overcome).

Ms Fletcher said that MMAL, as a wholly-owned subsidiary, was also required to carry the disclaimer but that it referred to the parent company, not the Australian operation.

While MMAL reported a $118 million loss to the end of March (including $25 million in asset write-offs and restructuring costs), this is a 48 per cent improvement over last year’s $226 million loss. Ms Fletcher said the result is ahead of the company’s projections but would not reveal when MMAL expected to reach break-even.

MMAL president and CEO Rob McEniry reiterated that the company has “right-sized” its operation and is now on a solid footing, but is still hindered by a lack of exports.

“The difficult decisions and actions taken by the management team in 2006 will continue to help us achieve further improvements in financial results in the current year,” Mr McEniry said.

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Mitsubishi battles on