[Excerpt:Rising defaults on its auto loans in the U.S. have stalled the recovery of the Tokyo-based company from record losses in the year to March 2001. Efforts to reduce risky lending left it with fewer incentives, prompting a 22 percent drop in U.S. sales in the January-October period this year as customers deserted for the showrooms of Nissan Motor Co. and other Japanese automakers.]

Mitsubishi Motors Posts 1st-Half Loss on U.S. Loans (Correct)
(Corrects dateline.)

Nov. 11 (Bloomberg) — Mitsubishi Motors Corp., 37 percent owned by DaimlerChrysler AG, reported a loss of 80.2 billion yen ($737 million) in the first half as it took a charge for U.S. customers missing loan repayments. It forecast a full-year loss of 11 billion yen.

Mitsubishi Motors’ group loss in the first six months ended Sept. 30 totaled 54.07 yen per share, compared with net income of 6.64 billion yen, 4.52 yen a share, a year earlier, it said in a statement. The company had been expected to lose 80 billion yen, according to three analysts surveyed by Bloomberg News.

Rising defaults on its auto loans in the U.S. have stalled the recovery of the Tokyo-based company from record losses in the year to March 2001. Efforts to reduce risky lending left it with fewer incentives, prompting a 22 percent drop in U.S. sales in the January-October period this year as customers deserted for the showrooms of Nissan Motor Co. and other Japanese automakers.

Sales dropped 25 percent in the half year to 1.21 trillion yen, compared with 1.619 trillion yen a year ago.
Last Updated: November 10, 2003 23:10 EST