Mitsubishi Motors has halved its full-year profit forecast, due to the impact of selling its Dutch factory, but said its latest quarterly earnings surged.
The carmaker said it now expects to earn a net profit of JPY13bn (USD$166m) in the fiscal year to 31 March 2013, down from an earlier forecast of JPY25bn.
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Mitsubishi said the change was due to the effect of the impending sale of all holdings in Netherlands Car BV. Earlier this year it announced plans to end production at the factory by the end of 2012, blaming a difficult operating environment.
Mitsubishi said earlier this month it would book a one-time loss from the sale of its sole European plant to the Dutch VDL industrial group for EUR1 in a deal that calls on the buyer to keep 1,500 jobs at the facility.
VDL is expected to maintain car production at the plant with BMW.
Mitsubishi said it posted a net profit of JPY20bn in the April-June quarter, up from JPY4.3bn in the same period last year. The rise was partly due to a one-time gain from the sale of its holdings in a Chinese automaker.
Sales in the quarter were down 2.9% at JPY419.3bn.
