Mitsubishi Motors Corp, which received a US$5.2 billion bailout in January, posted the sixth quarterly loss in eight as it failed to reverse a slump in sales after a cover-up of defects.
The loss more than doubled to ¥246.6 billion (US$2.28 billion) in the fourth quarter ended March, from last year's ¥112.9 billion, according to Bloomberg's calculation of Tokyo-based Mitsubishi Motors' annual results, announced yesterday. Sales fell 26 percent to ¥504.7 billion during the period.
President Osamu Masuko, who took over in January, plans to release three models in the next 12 months to spur US sales, which fell 53 percent in the period. The company also forecast a 12 percent gain in unit sales this fiscal year in Japan, where its reputation was most damaged by the admission that executives hid defects twice in the last five years.
"Mitsubishi Motors must develop a new attractive model to clean up its scandalous image," said Makoto Kikuchi, chief investment officer at Tokyo-based Myojo Asset Management Japan Co which includes auto-parts makers' shares. "It will take a long time for consumers to forget about Mitsubishi Motors' unethical actions in the past."
The carmaker won't report a profit until the year ending March 2007, with net income estimated at ¥8 billion for the period, Mitsubishi Motors said, keeping its forecast unchanged from January.
The carmaker's loss may narrow to ¥64 billion in the year ending March 2006, with sales rising 4.7 percent. The carmaker's operating loss may narrow to ¥14 billion while its current loss may shrink to ¥40 billion, according to its forecast.
Bloomberg calculated fourth-quarter figures by subtracting nine-month results from yesterday's full-year earnings.
Mitsubishi Motors' shares were unchanged at ¥133 in Tokyo.
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