Mitsubishi Motors (MMC) has reported large year-on-year falls to Q3 operating profit and net income as it faced market headwinds and lower sales related to its fuel economy scandal.

In the third quarter (of fiscal year) financial report, operating profit declined, year-on-year, by 80.7% to just 8.4 billion yen. Net income was down by 74.4% to 6.3 billion yen.

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However, on the upside, the company revised its forecasts for the full fiscal year 2016. The operating profit is now expected at 1 billion yen, an upward revision of 28.6 billion yen from the original forecast. This, MMC said, is mainly due to improved operating efficiency of 16.9 billion yen and impact of favourable exchange rates of 11.7 billion yen. Consolidated operating profit margin, which dropped to minus 3.7% in the first half, is estimated to increase to 3.2% in the second half.

Osamu Masuko, President and CEO of Mitsubishi Motors Corporation, made the following statement: “Our company is adapting more a culture of commitment, discipline and focus on performance following the Alliance with Nissan. We will focus our efforts to recover our performance fully in the second half to establish a solid ground for our V-shaped recovery.”

Global sales volume during the cumulative three quarters in FY16 declined to 673,000 units. This is 15% lower than the same period of last year but relatively in line with the revised plan released in October, the company said.

Sales in Japan totalled 50,000 units, down by 24% year on year. The drop in sales in the first half coming from the overstated fuel economy issue did not recover fully, MMC said. However, on a third quarter alone, sales rose by 1,000 units, compared to the same period of previous year.

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In North America, sales of Mirage declined but Outlander sales continued to grow strongly, resulting in 101,000 units overall, in line as the previous year. In Europe, sales resulted in 132,000 units, down by 16% year on year. This, MMC said, results mainly from the sales drop in Russia with lower than expected economy and lower sales of Outlander PHEV in Netherlands.

In Asia, total sales resulted in 229,000 units, which is lower by 5% year on year. Sales declined in ASEAN, in particular Thailand, where performance was lower than previous year. The affect of the new Pajero Sport launch and the Thai government’s tax incentives contributed more positively in the previous year. Sales in China are ‘recovering gradually with the localisation in production of the Outlander’.

Sales in other regions were put at 161,000 units in the first nine months of the fiscal year, down by 27% compared to the same period of last year as low commodity prices adversely affected demand in the Middle East and Latin America.