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Mitsubishi Motors Posts Q1 Loss; Sees Wider Loss In FY20; To Freeze New Models Launch In Europe

(RTTNews) - Japanese automaker Mitsubishi Motors Corp. (MMTOF.PK, 7211) reported Monday that its first-quarter loss attributable to the shareholders of the parent was 176.16 billion Japanese yen, compared to a profit of 9.31 billion yen last year. Basic loss per share was 118.36 yen, compared to prior-year's profit per share of 6.26 yen.

Operating loss for the period was 53.34 billion yen, compared to profit of 3.86 billion yen last year.

Consolidated net sales for the quarter fell 57.2 percent to 229.55 billion yen from last year's 536.16 billion yen.

Looking ahead to the fiscal year 2020, the company expects attributable net loss of 360 billion yen or 241.88 yen per share, operating loss of 140 billion yen and net sales of 1.48 trillion yen, which will be down 34.8 percent from last year.

In fiscal 2019, the company reported attributable net loss of 25.78 billion yen or 17.32 yen per share and operating income of 12.79 billion yen.

Separately, Mitsubishi Motors said its Board resolved to stop production in first half of 2021 and close the factory of its domestic production subsidiary, Pajero Manufacturing Co., Ltd.

The Board has also resolved to freeze the introduction of new models to the European market. Meanwhile, sales of existing models will continue.

Additionally, after-sales and services will continue, for customers who prefer to use Mitsubishi products.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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