TOKYO -- Mitsubishi Fuso Truck and Bus Co. said on Tuesday it booked a parent-only net loss of 88.18 billion yen ($807.2 million) in the business year ended March 31 after a series of vehicle recalls.
A year earlier, Mitsubishi Fuso, held 85 percent by DaimlerChrysler AG, posted a net profit of 6.61 billion yen.
The red ink was mainly due to a surge in special losses related to a 475 million euro ($577.9 million) charge booked by DaimlerChrysler last year for costs from the recall scandal at the Fuso unit, a Fuso spokesman said. The special loss totalled 157.74 billion yen, up from 2.29 billion yen in the 2003/04 business year.
Revenue fell 16 percent to 513.70 billion yen as domestic sales dropped 36 percent to 61,082 vehicles. Operating profit plunged 30 percent to 8.65 billion yen.
The results do not include earnings at Fuso's domestic and overseas subsidiaries, meaning they exclude sales and profits at dealers and from vehicles built and sold abroad.
Fuso's performance has been healthy overseas, with sales jumping 19 percent last business year to 53,591 units.
But it is still suffering from a battered image at home after its past practice of covering up vehicle defects resurfaced last year. The defects were linked to at least two road deaths in Japan.
In a bid to improve quality control, Mitsubishi Fuso a day earlier appointed a top quality officer at Renault SA to its board to oversee quality management.
Naoya Hasegawa, who had been seconded to Renault from partner Nissan Motor Co., was named senior vice president on Monday. He will work with Hideyuki Shiozawa, who was reappointed senior executive officer managing quality affairs, Fuso said.
Fuso has said it is expecting a group operating profit for the current business year, which began on April 1 and ends on Dec. 31 to bring its financial year in line with DaimlerChrysler's.
Fuso is not required to disclose group-based earnings because it is not a publicly traded company.