Mitsubishi Motors Corporation announced standalone earnings results for the third quarter and nine months ended December 31, 2016. On a standalone basis for the third quarter from October to December, profit recovered to JPY 8.4 billion as a result of operational efficiency driven mainly by cost reduction, optimized sales expenses, and favorable exchange rates.

For the nine months, net revenue during the cumulative three quarters in fiscal year 2016 (from April to December) resulted in JPY 1,341.8 billion 19% lower than the same period of previous year. Operating loss was JPY 23.2 billion due to the large loss through the second quarter. The company incurred a group net loss of JPY 213,307 million, dragged down by JPY 159.7 billion in special losses related to the scandal. The net loss compared with JPY 76,749 million in net profit from a year before.

In the nine-month period, the automaker's new vehicles sales skidded 15% from a year earlier to 673,000 units, as demand was sluggish both in the domestic and overseas markets.

Based on the financial results of the third quarter and the latest forecasts, the company has revised the full year forecast for fiscal year 2016. The operating profit is expected at JPY 1 billion, an upward revision of JPY 28.6 billion from the original forecast. This is mainly due to improved operating efficiency of JPY 16.9 billion and impact of favorable exchange rates of JPY 11.7 billion. Consolidated operating profit margin, which dropped to minus 3.7% in the first half, is estimated to increase to 3.2% in the second half. The company projected a smaller net loss for the year ending in March, at JPY 202 billion, against the previous forecast of JPY 239.6 billion. The estimated costs for compensation to business partners affected by the scandal are now believed to be smaller than previously expected.