Mitsubishi Motors has cut its full-year operating profit forecast by 30%, citing U.S. import tariffs, weaker sales, and rising selling costs. The Japanese automaker now expects an operating profit of 70 billion yen ($475.12 million) for the fiscal year ending next March, down from its earlier estimate of 100 billion yen.
The announcement pushed Mitsubishi shares down 2%, closing at 401.5 yen.
CEO Takao Kato said at an earnings briefing that the revised guidance reflects difficulties in passing on higher costs to consumers through planned price hikes and reduced incentives. He added that competition outside the U.S. has also intensified, forcing higher selling expenses and pressuring margins.
The forecast takes into account the recently agreed 15% tariff on U.S. imports, which is expected to take effect in October under the bilateral trade deal between Tokyo and Washington.
($1 = 147.3300 yen)
