Mitsubishi Motors Slips into Red

Posted: May 6, 2009 in Mitsubishi

Japan’s Mitsubishi Motors Corp. said it fell into the red in the last financial year, due to a sharp fall in sales and a stronger yen, but forecasts a return to profit this year.

Japan’s fourth-largest carmaker reported a net loss of 54.9 billion yen (566 million dollars) for the year to March, a turnaround from a profit of 34.7 billion yen in the preceding year.

Operating profit plunged 96.4 percent to 3.9 billion yen as revenue fell 26.4 percent to 1.97 trillion yen. Lower sales and the strong yen were the main reasons behind the weak performance, the company said. The carmaker booked 27.5 billion yen of extraordinary losses due mainly to restructuring its balance sheet.

Mitsubishi Motors said it managed to stay in the black at the operating level thanks to cost-cutting and restructuring.

For the current year to March, the company expects an operating profit of 30 billion yen and a net profit of five billion yen.

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