| 11:06 AM EST

Subaru, Mitsubishi Cut Forecasts as Sales Cool

#Subaru #Mitsubishi #asia


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Subaru Corp. and Mitsubishi Motors Corp. are the latest Japanese carmakers to lower their sales and profit guidance, blaming sagging demand and a stronger yen.

Subaru’s unit sales rose 4% to 504,000 units in the first half of its fiscal year ending next April 30. Operating profit jumped 68% to 94.8 billion yen ($869 million).

But the company says its previous outlook in August has been tempered by unfavorable exchange rates, typhoon-related production disruptions in October and higher quality-related costs.

Subaru affirms its earlier guidance for full fiscal year sales of 1.06 million cars. But it lowered its operating profit forecast by 15% to 220 billion yen ($2 billion). The company now anticipates an annual net profit of 163 billion yen, down 22% from its previous outlook.

Mitsubishi cut its revenue forecast for the fiscal year by 5% to 2.6 trillion yen ($23.6 billion), down 3% compared with the previous fiscal year. The company also slashed its operating and net profit forecasts by two-thirds and 92% to 30 billion yen and 5 billion yen, respectively.

MMC says it its revised outlook is due primarily to slumping wholesales and a stronger-than-expected yen. The company anticipates full fiscal year unit sales of 1.27 million vehicles.

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