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Mix-Ansicht- Mitsubishi warns of record $2.2 billion loss - YIHI, 28.03.2001, 14:08
- Wie angekündigt.. - YIHI, 28.03.2001, 14:11
Mitsubishi warns of record $2.2 billion loss
Mitsubishi warns of record $2.2 billion loss
Mitsubishi records a record annual loss
March 28, 2001
Web posted at: 6:18 PM HKT (1018 GMT)
By Staff and wire reports
TOKYO, Japan - Mitsubishi Motors Corp. warned Wednesday its losses would be double previous forecasts.
Mitsubishi, Japan's fourth-largest carmaker, said it would lose $2.2 billion, or 270 billion yen, for the year ending March 31.
That is a record annual loss for the company. It had previously forecast a loss of 140 billion yen.
The warning came after the close of trading. But Japanese auto stocks were down ahead of the news, which follows yesterday's profit warning from Honda Motor Co., Japan's second-largest car company.
Both Mitsubishi and Honda say they are seeing large losses in their European divisions.
Mitsubishi said it expects an $819 million loss, or 100 billion yen, at its European operations. Honda warned it would lose $408 million in Europe, blaming the weak euro.
Scandal-ridden Mitsubishi, which has admitted systematically covering up product defects, blamed the cost of two recalls for its poor performance this fiscal year.
Mitsubishi also blamed the cost of a restructuring. The company announced in late February that it plans to cut 9,500 jobs, 14 percent of its workforce, by 2003.
It said Wednesday it would close a plant in Nagoya, Japan. It had earlier announced it would close a plant but has not identified which one.
Mitsubishi will take a special charge of 128.5 billion yen to cover the recalls and the restructuring.
The company also said that car sales in Japan have been falling since it first forecast its loss in November.
Mitsubishi shares ended the day down 1.9 percent at 365 yen. Most auto stocks were already heading south after Honda's announcement.
But analysts said Mitsubishi was not as attractive as other Japanese carmakers.
"We have seen Toyota and Honda in one category as investment targets up there, with Nissan coming beneath it and then Mitsubishi. This has pushed it even lower," said Nobuaki Kurisu, chief fund manager at Sumisei Global InvestmentTrust Management.
Mitsubishi said it would not seek financial help from DaimlerChrysler, which owns 34 percent of the Japanese company.
Reuters contributed to this report.
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