Mitsubishi Fuso Truck and Bus Corp. has reported soaring profits for its latest fiscal year but reportedly said it could not provide an earnings outlook because of problems in assessing the damage from a massive recall scandal.
The company told The Associated Press (AP) it expects a significant fall in demand in Japan, however.
“It is currently not possible to finally assess the financial and business impact of all quality related measures and issues,” Fuso reportedly said in a statement.
According to AP, In the year ended March 31, Mitsubishi Fuso, which is 65% owned by DaimlerChrysler , posted a group net profit of 17.5 billion yen ($US161 million), up more than 11 times from its profit of 1.5 billion yen in the previous fiscal year.
Sales reportedly jumped 23% to 894.0 billion yen ($8 billion) from 724.0 billion yen previously as the introduction of stricter regulations on exhaust emissions in Tokyo and other major cities last year boosted sales of environmentally friendly diesel trucks and buses.
AP noted that Mitsubishi Fuso, formerly the truck division of Japanese automaker Mitsubishi Motors Corp., was spun off last year, has announced massive recalls this year for defective wheels, clutch systems and dozens of other serious defects and has been banned by Japan’s transport ministry from public bidding to supply official vehicles until November 6, 2005.