Mitsubishi Motors downgraded its full-year profit projections Wednesday, cutting the operating income forecast by 30% to ¥70 billion ($475 million) as U.S. trade tariffs and sluggish Southeast Asian sales weigh on performance.
The Japanese automaker also reduced its net profit outlook to ¥10 billion ($68 million), representing a 76% decline from the previous year, according to supplemental earnings materials released Tuesday. The company’s shares fell 2% in Tokyo trading following the announcement.
Nikkei reported the revised guidance reflects mounting pressure from American tariff policies and weakening demand in key Asian markets where Mitsubishi has traditionally maintained strong positions. The automaker’s presentation materials show direct U.S. tariff impacts alone are expected to reduce operating profit by ¥32 billion ($217 million).
Despite the profit squeeze, Mitsubishi maintained its global retail sales target of 869,000 vehicles, up 3% from the previous year. The company projects total revenue will reach ¥2.86 trillion ($19.4 billion), a modest 3% increase.
The forecast revision comes after Mitsubishi posted an 84% decline in first-quarter operating profit to ¥5.6 billion, significantly missing analyst expectations. The automaker joins other Japanese manufacturers grappling with currency headwinds and shifting trade policies that have disrupted traditional export patterns.
