Mitsubishi profit falls

Mitsubishi Motor Corp's operating profit fell 81 per cent in the latest quarter to $100 million, down from $527 million the previous year. Executive vice president and CFO Koji Ikeya announced that net income fell 74 per cent to $73.6 million in a statement on Tuesday. Mitsubishi also lost $88.7 million in the quarter covering costs associated with its improper fuel economy testing of vehicles sold in Japan. Mitsubishi executives confessed to the cheating last year. Global sales fell 11 per cent in the fiscal third quarter to 237,000 vehicles. Sales in Japan fell 24 per cent in the quarter from the previous year. Sales in most markets were weak, but the weakening yen lowered currency-related losses. Ikeya expects full-year operating profit of $12 million after a first-half loss of $38.2 million, previously forecasting a $32 million loss. Mitsubishi said cost efficiencies resulting from its alliance with Nissan Motor Co Ltd would improve its bottom line this year, according to Reuters. Last October, Nissan acquired a 34 per cent controlling stake in Mitsubishi and promised to help its rival recover from the fuel cheating scandal.