Mitsubishi Motors Corp. is expected to mark a record consolidated net loss of more than 400 billion yen for fiscal 2004, which ends in March, after being battered by sluggish sales in North America, according to sources.
The projected loss, revised from an earlier expected loss of 240 billion yen, is far larger than the previous record net loss of 278.1 billion yen registered in fiscal 2000 and will be the biggest since the automaker's establishment in 1970.
The revision mainly stems from slumping sales in overseas markets, including North America, and the introduction of asset impairment accounting, the sources said.
The new accounting rule requires companies to post valuation losses on fixed assets whose market value drops sharply from their book value.
Mitsubishi Motors, which has been suffering from poor sales at home after a series of defect coverups and recalls, plans to announce the earnings revision when it releases its new revival plan later this month, the sources said.