TOKYO - Japan's Mitsubishi Motors Corp said on Monday an Egyptian sales firm is suing it for $900 million in damages, complaining it "unfairly" ended a distribution contract. Separately, the Japanese automaker slashed its estimate of annual operating profit by 54 per cent to 13.8 billion yen ($149.7 million), citing a drop in vehicle sales and the failure to fully meet its planned cost reductions. A spokesman said Mitsubishi Motors expected no impact from the lawsuit. The maker of the Pajero SUV lowered its net profit estimate for the year ended March 31 by 6 per cent, to 4.7 billion yen, shored up by the yen's recent weakening. In a suit filed in an Egyptian court, sales firm Masria Co said Mitsubishi's termination notice lacked reasonable grounds and demanded an extension of the contract or damages of $900 million, equivalent to 56 per cent of Mitsubishi Motors' net assets, the automaker said. Mitsubishi, Japan's sixth-largest automaker, said it served a termination notice on Masria six months before the contract was due to expire, in accordance with agreed provisions. "Mitsubishi Motors will strenuously fight this lawsuit," it said in a statement. Shares in Mitsubishi Motors ended down 1.5 per cent in a weak Tokyo market before the news. The company is due to announce its annual results on April 27. ($1=92.15 Yen)
