Mitsubishi loses less than predicted in half-year

Mitsubishi Motor has reported a stronger than expected first half performance, boosted, like its Japanese competitor Mazda, by a weak yen and cost-cutting.

MMC said this morning it made a net loss of 31.5 billion yen (£180m), or almost 20 billion yen (£114m) less than the 50 billion yen (£285.7m) loss it warned shareholders to expect back in May. It compares with a loss of 75.6 billion yen (£432m) for the same period last year.

The better-than-expected results is a sliver of a silver lining in the dark clouds surrounding the company, realing from a massive recall and associated cover-up scandal and a decline in sales.

Mitsubishi remains confident it can break even as forecast at the end of this financial year, despite the slump in the global economy.

It said sales volumes in the first half dropped from 675,000 units in the first half of 2000 to 658,000 units this year, with domestic sales in the first half declining 16% to 203,000 units compared to the same period last year. It is forecasting a drop in sales for the full year from an original forecast of 1.55m units to 1.44m units. It said sales volumes in Japan and Europe would decline but would increase in the US, Asia and the rest of the world.