Mitsubishi slashes profit outlook
Mitsubishi Motors Corp is facing its lowest profit in three years after cutting its full-year profit outlook by 67 per cent.
The company predicts sluggish demand in North America and China will continue, while a strong yen and research and development costs will also hurt its bottom line.
Japan’s sixth-largest carmaker expects operating profit to come in at ¥30 billion (NZ$432.3 million) in the year to March, down from a previous forecast for ¥90b, reports Reuters. The new prediction would be Mitsubishi’s lowest profit since the year ended March 2017.
The forecast comes after Mitsubishi, in which Nissan Motor Co holds a controlling stake, reported a 78 per plunge in operating profit during the September quarter to ¥6.3b.
Mitsubishi is the latest Japanese firm to reveal it faces lower profitability. In the past month, Subaru Corp, Mazda Motor Corp and Suzuki Motor Corp have all cut their outlooks due to the strong yen and slowing demand for their cars.