TOKYO: Nissan Motor Co said on Tuesday it expects to make an annual operating loss for a second straight year, as the coronavirus pandemic hampers its efforts to emerge from a deep slump in sales.
It forecast an operating loss of ¥470 bil (RM19.14 bil), which would be its biggest, according to Nissan data that goes back to 1977 and much larger than a consensus estimate of a ¥262.8 bil loss drawn from 20 analysts polled by Refinitiv.
It predicted revenue would plunge by a fifth to ¥7.8 tril and global vehicle sales would fall 16.3%.
Years of aggressive expansion, particularly in emerging markets, has left Japan’s No 2 automaker with dismal margins, an ageing portfolio and a tarnished brand.
Still reeling from the 2018 arrest and ouster of former CEO Carlos Ghosn, Nissan unveiled a far-reaching restructuring plan in May that calls for a dramatic reduction in production lines and its vehicle model range.
In the first quarter, Nissan posted an operating loss of ¥153.9 bil, its second consecutive quarterly loss after falling ¥94.8 bil into the red in January-March.
Nissan’s woes have highlighted the fragility of its automaking partnership with France’s Renault SA which has also announced a major restructuring as it rows back on policies pursued by Ghosn, now a fugitive wanted on charges of financial misconduct in Tokyo. Ghosn denies the charges.
Mitsubishi Motors Corp, a junior partner in the three-way alliance, saw its shares tumble some 13% on Tuesday after sales in Southeast Asia plunged 70% during the April-June quarter. – July 28, 2020, Reuters
