Mitsubishi Motors expects $240 million in yearly losses

Japan’s Mitsubishi Motors expects an annual net loss of $240 million because of the impact of the coronavirus pandemic on sales, the automaker said Friday.

The firm, which operates in alliance with Nissan and Renault, had earlier projected a 5 billion yen ($46.5 million) profit for the fiscal year through March.

But it said revenues had been hammered by “further decline in global automotive demand and the impact of the spread of COVID-19” in a statement that also slashed operating profit forecasts by 60 percent to 12 billion yen.

Company chief Osamu Masuko and other executives will take a pay cut of up to 30 percent, the company said.

The automaker is scheduled to announce its full-year earnings next month.

The pandemic has also forced major airlines to slash their annual forecasts as worldwide lockdowns introduced to help contain the virus crippled travel demand.

Japan Airlines on Wednesday said it cut net profit forecast by 43 percent while rival carrier ANA slashed its annual net profit forecast by 71 percent.

More than 2.7 million people have suffered COVID-19 infections including more than 190,000 deaths, with nearly two-thirds of the fatalities in Europe.