-- Mitsubishi Motors (TYO:7211) swung to a loss in the third quarter of the 2025-2026 fiscal year as the company felt the impact of the U.S. tariffs on its operations.
The loss attributable to owners during the period was 4.49 billion Japanese yen, or 3.35 yen per share, according to the company's earnings published Tuesday.
The attributable profit a year earlier was 33.2 billion yen, or 22.8 yen per share.
Net sales slid 1% year on year to 1.977 trillion yen from 1.989 trillion yen.
"Price competition continues to be severe due to the continued aggressive export stance of Chinese manufacturers," the automobile company said during an investor call. "Furthermore, geopolitical and macroeconomic uncertainties remain high, including U.S.-China tensions, policy friction over green products, and concerns about a global economic slowdown."
The impact of the tariffs eased at the start of the year as the U.S. made trade deals with China. However, the automobile industry continues to face challenges amid the Middle East conflict.
Japanese automakers are forced to trim production and look for alternative supplies as the war in Iran affected aluminum supplies. Carmakers, such as Toyota (TYO:7203) and Denso (TYO:6902), purchased 70% of their aluminum imports from the Middle East, the Japan Times reported April 20, citing data from Japan's top auto lobby.
Uncertainty still lingers despite the U.S. and Iran agreeing on a ceasefire. There is still the risk of metal supplies dwindling as the Strait of Hormuz has not yet fully opened.
Meanwhile, Mitsubishi forecasted that its attributable profit for the full 2025-2026 fiscal year will jump 76% to 10 billion yen, with a basis earnings per share of 7.47 yen.
Net sales for the full fiscal year are expected to grow to 2.900 trillion yen after the introduction of new models pushed sales volume higher, especially in December 2025, the company said.