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Mitsubishi Motors April-Dec. group net profit drops 22.2 pct on year

TOKYO
2016-02-03 16:57

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Mitsubishi Motors Corp. announced on Wednesday that its group net profit in the nine months to December fell 22.2 percent on year to 76.75 billion yen (640 million U.S. dollars) owing to its production halt in the United States.

Due to the poor sales in North America leading to the closure of its plant in Illinois last year, the automaker posted special losses related to the closure, such as severance pay, totaling 15. 3 billion yen. Mitsubishi Motors said, however, that in the April to December period, it recorded an operating profit of 102 billion yen.

The amount was a 1.2 percent increase compared to the same period a year earlier, with the automaker saying that its sales rose 4.6 percent to 1.66 trillion yen. For this business year, the automaker lowered its group sales outlook from initial estimates of 2.28 billion yen, to 2.26 trillion yen. Its group net profit outlook was kept at 100 billion yen, which is more than 15 percent less than the previous business year.

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