Key Moments:
- Friday’s trading session witnessed Mitsubishi shed 2% of its value.
- Mitsubishi Corp expects a 26% decline in net profit for the fiscal year ending March, targeting 700 billion yen.
- Net profit for the previous fiscal year slipped 1.4% to 950.7 billion yen, falling short of analyst estimates.
Weaker Outlook Tied to Lack of Capital Gains
Japanese car manufacturer Mitsubishi Corp has announced that according to current estimates, its net profit will fall sharply in the fiscal year ending next March. The decline will see earnings drop 26% to 700 billion yen ($4.82 billion). The company attributed the projected 26% decline largely to an expected lack of large-scale capital gains, which had supported previous performance.
Annual Results Undershoot Market Forecasts
For the year that ended in March, Mitsubishi’s net profit hit the 950.7 billion yen mark, down 1.4% year-over-year. This result came in slightly below market expectations, as it failed to reach the average estimate of 957.1 billion yen that analysts participating in an LSEG poll had projected.
Investor Unease Pushes Stock Downward
During Friday’s trading session on the Tokyo Stock Exchange, Mitsubishi Corp suffered a notable downturn. The company’s share price slid by 2%, reaching 2,633 yen. This decline occurred in the immediate aftermath of the announcement, seeing as it painted a less optimistic picture for the coming fiscal year.
Ongoing Investment from Berkshire Hathaway
Despite bearish sentiments, Mitsubishi has continued to attract attention from global investors. Berkshire Hathaway, helmed by Warren Buffett, has been steadily raising its investment in the company. The holding company has also been increasing its stakes in firms such as Marubeni and Sumitomo Corp.
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