Mitsubishi Reports Q1 Loss Amid Fuel Economy Scandal

Mitsubishi Reports Q1 Loss Amid Fuel Economy Scandal   - Mitsubishi Motors Corp. reported a 75 percent plunge in fiscal first-quarter operating profit as domestic sales slumped after it admitted to overstating the fuel economy of some of its vehicles.

Japan's sixth-largest car maker by vehicle sales posted an operating profit of 4.6 billion yen ($43.63 million) in April-June, down from 18.6 billion yen during the same quarter last year, the company said in a statement Wednesday.

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Revenue fell 14 percent to 428.7 billion yen.

Mitsubishi, in its financial tables, said its net swung to a loss of 129.72 billion yen in the latest quarter from a gain of 23.99 billion yen a year earlier, primarily due to an extraordinary loss of 125.86 billion yen tied to the fuel-economy cheating.

Mitsubishi stuck with its forecast for an annual net loss of 145 billion yen for the year to March as the fallout from the mileage-cheating scandal drags down operating profit by a whopping 82 percent.

In the wake of the scandal, Nissan Motor Co. is taking a controlling 34 percent stake in Mitsubishi Motors with a $2.2 billion investment.

Sources :
motortrend.com ( News )

autonews.com 

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