Nissan has warned that it would publish a net loss of up to 750 billion yen ($ 5.3 billion) for the fiscal year that ended in March – a record annual deficit – as the restructuring fees on the faltering Japanese car maker receive.
With the aging collection, Nissan deduced its cars in order to avoid building inventory and erosion of profits. Analysts on average expected a loss of 112 billion yen, which itself was worse than April’s previous view of 80 billion yen.
The most expected results will put increasing pressure on Nissan to find another lifestyle after the efforts to combine Honda. Officially ended Earlier this year. This led to the overthrow of CEO McCoto Ashida, who said it would be “difficult to stay” without a kind of partnership.
While Nissan raised a little her sales expectations late Thursday, the company warned that its net loss may range from 700 billion yen to 750 billion yen. “This is primarily due to the changes in the competitive environment and the deterioration in sales performance,” said the auto company.
The shares of the company increased by up to 3.1 % on Friday, and some analysts indicated that there were at least an improvement in the car manufacturer. The stock has still has decreased 29 % since January.
Tatsu Yoshida, Bloomberg’s intelligence analyst, said that Nissan “finally recognized the inevitable, so this is a good thing.” “The market was already expecting a greater loss.” Yoshida added that although the Japanese auto manufacturer addresses its losses to start a new start, “it does not necessarily mean that the future is bright.”
Citigroup analyzers said that disabilities are equivalent to about 10 % of concrete and incregivable assets.
“Nissan was aiming at a cost structure that could generate profits even when producing 3.5 million units, but plans to improve the tie point,” wrote Arifumi Yoshida from Citigroup in a note. At the end of March, the net net criticism of Nissan reached 1.49 trillion yen, a height of 1.24 trillion yen at the end of December and “we consider the improvement to some extent.”
Automobile maker sales stumble in the United States and China while facing $ 5.6 billion in Debt obligations Next year. Nissan’s credit credit bodies widened sharply on Friday morning. “Given the challenges facing the transformation and the costs of recovery of bonds,” said Hiroki Ouction, a credit analyst in the Daoa Securities Group.
Nissan also does not have a strong assortment of hybrid vehicles to supply customers in the main markets and have been involved in administrative turmoil and internal fighting since the arrest of former President Carlos Ghosen and his removal in 2018.
Oshida, 58, last month to take responsibility for the deterioration of Nissan’s fortunes, and replaced Ivan Espinoza, who had previously won the title of chief planning employee for a year.
Espinoza, 46, faces an unenviable task and is the opposite of Nissan’s fortunes, updating the team of outdated team and finding new commercial partners. He will also have to navigate the unrest caused by Donald Trump’s tariff by 25 % on the car and imported parts in the United States.
Nissan said it is now expected that the operating income will be 85 billion yen, a decrease from previous expectations of 120 billion yen. Net sales is likely to reach 12.6 trillion yen, instead of 12.5 trillion yen, according to the company.
This story was originally shown on Fortune.com
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