Despite posting a net loss of 26.4 billion yen ($272.89 million) as against a net profit of $106.47 million yen a year ago, Mitsubishi Motors Corp maintains its forecast of $52.6 million profit for current fiscal year.

MMC consolidated net sales fell 58 per cent to $2.73 billion and operating loss of $305.97 million as against an operating profit of $102.33 million a year ago, as sales fell amid the global financial crisis and a stronger yen. Mitsubishi's earns 80 per cent of its revenue from the overseas market and a strong yen affected the profitability of the company.

"Although the worst seems to be over, the operating climate remains severe," the company said in a statement. Sales improved month by month with signs of positive effects from the government's eco-car incentives such as tax reductions and subsidies provided in some countries like Japan, however, total sales volume failed to recover to 2008 levels.

Global retail sales dropped 32 per cent to 213,000 vehicles as overall demand fell due to the global recession.

In Japan, sales dropped 21 per cent to 31,000 vehicles, 42 per cent to 21,000 vehicles in North America and 47 per cent to 49,000 vehicles in Europe year-over-year.

The fourth-largest carmaker's sales in Asia and other regions especially China and the Philippines increased, however, overall sales volume for the region dropped 24 per cent to 112,000 vehicles from a year ago.