Japan’s Mitsubishi Motors cuts full-year operating profit forecast by 30%

Japanese automaker Mitsubishi Motors sharply cut its fiscal year operating profit forecast by 30% to 70 billion yen ($475.12 million), citing the adverse effects of U.S. tariffs, reduced sales volume, and elevated selling expenses. The significant downward revision prompted a 2% decline in the company's shares.

Analysis

Japanese automaker Mitsubishi Motors has issued a significant downward revision to its full-year operating profit forecast, cutting it by 30% to 70 billion yen. This material guidance reduction, a 30 billion yen decrease from the previous forecast, is attributed to a combination of external and internal pressures: the negative financial impact of U.S. tariffs, lower-than-expected sales volumes, and higher selling expenses. The market reacted negatively to the news, with the company's shares falling 2% to approximately 401 yen. The multiple headwinds cited by management signal a challenging operating environment and a deteriorating profitability outlook for the fiscal year.