Tokyo  - Mitsubishi Motors Corp and Mazda Motor Corp joined a growing number of Japanese automakers Wednesday in predicting losses for the current fiscal year, all dragged down by the yen's rise against the dollar and slumping demand.

Mitsubishi said it expected net losses of 60 billion yen (670 million dollars) for the 2008-09 business year ending in March, the first loss in three years.

Sales are predicted to slump to 2.01 trillion yen, down from earlier estimates of 2.36 trillion yen, while operating profits are now projected at 5 billion yen, down from an earlier estimate of 50 billion yen.

In October, Japan's sixth largest car manufacturer, still predicted net profits of 20 billion yen for the full year. In the previous business year, Mitsubishi reported a net profit of 34.7 billion yen.

Mazda revised downwards an earlier forecast of 50 billion yen in net profit and now expects a net loss of 13 billion yen. Operating results are also likely to be in the red, with an operating loss of 25 billion yen expected for the full year, compared to an operating profit of 90 billion yen the year before.

The company reported an operating loss of 24.2 billion yen in the third quarter.

The number five Japanese automaker, which is partly owned by Ford Motor Co, expects sales to tumble to 2.55 trillion yen, down from 3 trillion yen of earlier forecasts.

Both companies said they were striving to cut costs and reduce production.

Japan's car industry is suffering from the yen's rise against the dollar, which slashes profits from exports.

Market leader Toyota Motor Corp said earlier it expected the first operating loss in company history. (dpa)