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Mitsubishi Predicts a Net Loss This Year
Mitsubishi Motors Corp. expects to report a net loss of 145 billion yen ($1.4 billion) in the fiscal year that began April 1, reversing an 89 billion-yen profit in the previous year.
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Mitsubishi Motors Corp. expects to report a net loss of 145 billion yen ($1.4 billion) in the fiscal year that began April 1, reversing an 89 billion-yen profit in the previous year.
The loss will be MMC’s first in eight years. The company says its revenue this year will likely plunge 16% to 1.9 trillion yen ($18 billion). Results have been hurt by a fuel economy ratings scandal that began three months ago.
Last week MMC said it would book a 50 billion-yen ($480 million) charge to cover the cost of compensating its customers in Japan for overstating the efficiency of 20 models—including some produced for Nissan Motor Co.—for at least a decade. The amount is in addition to 19.1 billion yen ($173 million) the company booked for scandal-related costs in the previous fiscal year.
Analysts say costs are likely to grow as the company compensates Nissan and its own suppliers for lost sales caused by the cheating. MMC says no affected vehicles were sold outside Japan.
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