Aug 27, 05:35 PM

Mitsubishi Motors Cuts Net Profit Forecast to 10 Billion Yen, Operating Profit Down 30% Due to Trump Tariffs; Caterpillar Warns of $1.8 Billion Tariff Impact

Mitsubishi Motors has revised its full-year profit forecast downward, projecting a net profit of 10 billion yen for the fiscal year ending March 2026, an 80% decline from the previous forecast of 40 billion yen. The company attributed the sharp reduction primarily to the impact of U.S. tariffs, often referred to as the "Trump tariffs," and a slump in sales in the ASEAN region. Mitsubishi initially expected to offset tariff-related losses by increasing sales in other global markets, but this strategy has not been successful, leading to intensified competition in those regions. The automaker's operating profit forecast was also cut by 30%, resulting in a dip in its share price. This development reflects broader challenges faced by Japanese automakers in the U.S. market amid rising tariff costs. Separately, Caterpillar Inc. has warned that new tariffs could reduce its financial results by $1.5 billion to $1.8 billion for 2025, with a $500 million to $600 million impact expected in the third quarter alone, pressuring its margins toward the low end of guidance. The combined effects of tariffs are creating significant headwinds for major Japanese and U.S. manufacturers.

#Mitsubishi Motors #Trump #ASEAN #Mitsubishi #Japanese

Written with ChatGPT (GPT-4).

Mitsubishi Motors Cuts Net Profit Forecast to 10 Billion Yen, Operating Profit Down 30% Due to Trump Tariffs; Caterpillar Warns of $1.8 Billion Tariff Impact

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