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Shares in Mitsubishi Motors climbed as much as 6.9 per cent on Wednesday after the Japanese automaker forecast a return to profit for the current fiscal year.

The company on Tuesday reported a net loss of ¥198.5bn, booking an extraordinary loss of ¥165.5bn related to the scandal resulting from falsification of fuel economy data on at least 625,000 vehicles.

Operating profit fell 96 per cent to ¥5.1bn as net sales for the year dropped 15.9 per cent to ¥1.9tn.

But the company forecast net income of ¥68bn for the fiscal year ended March 31, 2018 and projected sales would rise 4.9 per cent to ¥2tn, with operating profit expected to rise 1,267.6 per cent to ¥70bn.

The forecasts assumed an exchange rate 0f ¥105 per dollar and ¥115 per euro.

Shares in the company had pulled back slightly as the morning session progressed to trade up 6.2 per cent at ¥751. The benchmark Topix index was up 0.2 per cent.

Copyright The Financial Times Limited 2018. All rights reserved.

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