This will give you some insight
Mitsubishi Motors expects $4.3 billion loss, paper reports
Copyright © 2004 Reuters Ltd.
TOKYO - Ailing Mitsubishi Motors Corp. will report a huge downward revision to its full-year earnings outlook, forecasting a net loss of more than $4.3 billion, the Yomiuri Shimbun newspaper reported on Wednesday.
The daily said the Japanese auto maker, which has estimated a 240 billion yen net loss for the year ending March 31, would widen that to over 450 billion yen.
The company was hit by the adoption of new accounting standards for fixed assets and a damages payment to former main partner DaimlerChrysler AG, it said.
Mitsubishi shares sank 5.9 percent to 144 yen by the end of trade, while the Nikkei average gained 0.88 percent.
Other media also reported the likely revision, with Kyodo news agency saying the loss would amount to more than 400 billion yen.
A Mitsubishi Motors spokesman said the figures were based on speculation and declined further comment.
The revision is expected to be announced by the end of the month, when Mitsubishi unveils a new revival plan which will include a second major aid package after DaimlerChrysler gave up on its rehabilitation last April.
Financial sources said this month that Mitsubishi group firms planned to pour up to 300 billion yen more into the automaker.
Mitsubishi Motors secured an aid package of 496 billion yen from the Mitsubishi group and others last year, but its troubles deepened when it was found that it had not fully dealt with correcting its past practice of covering up vehicle defects.