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Mitsubishi Motors shares fall as much as 7.4% after 1Q earnings
ByAinvest
Thursday, Jul 24, 2025 8:09 pm ET1min read
Mitsubishi Motors shares fall as much as 7.4% after 1Q earnings
Mitsubishi Motors Corporation (MMTOF) reported a significant decline in its first-quarter earnings, leading to a sharp drop in its stock price. The company's shares fell as much as 7.4% on July 24, 2025, following the release of its Q1 financial results.The Japanese automaker reported an 84% year-on-year decrease in its operating profit, which was attributed to the impact of U.S. tariffs imposed by former President Donald Trump. The operating profit for the April-June quarter fell to 5.6 billion yen ($35.5 million), down from 35.52 billion yen in the same period last year [2].
The company's net income also took a hit, dropping to 738 million yen, or 0.55 yen per share, compared to 29.47 billion yen, or 19.82 yen per share, in the previous year. Quarterly sales slipped to 609.09 billion yen from 627.52 billion yen a year ago [1].
Mitsubishi Motors expects sales to rise 5.8% year-on-year to 2.95 trillion yen for the full fiscal year. However, net income is forecast to fall 2.4% to 40 billion yen, with basic earnings per share projected at 29.89 yen [1].
The company's stock price decline came amidst a broader rally in Japanese shares following U.S. President Donald Trump's announcement of a trade deal with Japan, which will subject the latter to a 15% tariff. Automakers, including Mitsubishi Motors, were among the best performers on the Nikkei 225 index, with shares rising between 6% and 10% [3].
Mitsubishi Motors' shares fell as much as 7.4% after the company's Q1 earnings report, reflecting investors' concerns about the impact of U.S. tariffs on the company's financial performance.
References:
[1] https://finance.yahoo.com/news/mitsubishi-motors-posts-sharp-decline-084334559.html
[2] https://asia.nikkei.com/Business/Automobiles/Mitsubishi-Motors-Q1-profit-plummets-as-Trump-tariffs-bite
[3] https://www.investing.com/news/stock-market-news/japan-shares-rally-after-trump-announces-trade-deal-4147116
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