Tokyo (Reuters) -Mitsubishi Motors lowered his forecast for operational profit for the current financial year, the Japanese car manufacturer invoking the impact of American customs duties, weaker sales and the increase in marketing costs on Wednesday.
The manufacturer now plans to make an operational profit of 70 billion yen (405.85 million euros) for the year ended next March, against a previous estimate of 100 billion yen.
The group’s action fell 2% to the announcement of this revision, to end at 401.5 yen.
The managing director, Takao Kato, said at a point on the results that the new forecasts reflect the difficulties in implementing the price increases and the reductions of incentives provided in order to compensate for the costs linked to the customs duties.
Competition intensified in the markets outside the United States, companies seeking to compensate for the impact of American prices, which increased sales costs and increased pressure on profitability, he added.
The new forecast is based on the hypothesis that the customs tariff of 15%, agreed last month between Tokyo and Washington as part of a bilateral agreement, will come into force from October.
(Written by Daniel Leussink; Noémie Naudin, edited by Augustin Turpin)
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