Mitsubishi Motors Corporation reported quarterly net income of just ¥738 million ($5.1 million) for the first quarter ended June 30, down dramatically from ¥29.5 billion ($204 million) in the same period last year. The Japanese automaker’s operating profit fell 84% to ¥5.6 billion ($38.7 million) as sales revenue declined 3% to ¥609.1 billion ($4.2 billion).
The company pointed to significant foreign exchange headwinds as a primary factor in the earnings decline. In the prior-year quarter, Mitsubishi Motors had recorded foreign exchange gains of ¥8.2 billion, which did not repeat this year. Currency impacts reduced operating profit by ¥20.9 billion compared to the previous year, offsetting modest improvements in regional sales performance.
Chief Financial Officer Kentaro Matsuoka acknowledged that automobile tariffs implemented in April have already begun affecting sales, though he expressed cautious optimism about recent trade developments. The executive noted that while reduced tariffs outlined in recent trade agreements will provide some relief, the company cannot completely relax its guard against protectionist measures.
Despite the challenging quarter, Mitsubishi Motors maintained its full-year guidance, projecting a 5.8% increase in annual sales to ¥2.95 trillion ($20.4 billion). However, the company expects net income to fall 2.4% to ¥40 billion ($276 million) for the fiscal year.
Regional performance showed mixed results. While Asian markets delivered stronger performance with ASEAN sales rising to ¥127 billion, North American revenue declined to ¥148.6 billion. European sales remained relatively stable at ¥30.8 billion.
The automaker faces intensifying competition as rivals expand production to offset trade restrictions. Mitsubishi Motors continues investing in new model development, including the upcoming Delica D:5 SUV launch in Indonesia this month and the Xforce hybrid variant rollout in Thailand, as it works to restore profitability in an increasingly challenging operating environment.
