On November 6, Japanese automaker Mitsubishi Motors (MMTOF) reported its second-quarter results, with operating profit rising 77% year-on-year to 20.6 billion yen, in line with market expectations, while vehicle shipments and other operating metrics also broadly met analyst forecasts.
However, the company still lowered its full-year earnings outlook, cutting its full-year operating profit forecast to 70 billion yen, mainly weighed down by weak vehicle sales performance, intensifying price competition in the market, and rising raw material costs.
Mitsubishi Motors said the current automotive market environment remains severe, with the situation in the Middle East and competition from low-priced electric vehicles continuing to put pressure on operations.
Although exchange rate movements are expected to partially offset the negative impact of weak sales and rising costs, they are not enough to reverse the downward revision to the full-year earnings forecast.
On the cash flow front, the company's net cash position declined in the second quarter, mainly in line with seasonal patterns.
Management expects that by the end of the fourth quarter of this fiscal year, the net cash level will recover to 304 yen per share as of the end of March 2026.
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