Nissan downgrades forecasts as 9-month net profit plunges
YOKOHAMA, Feb 16: Crisis-hit Japanese automaker Nissan said Thursday its net profit plunged more than 87 per cent for the nine months to December as it struggles with weak demand and fallout from the arrest of former boss Carlos Ghosn.
Nissan revised downwards its full-year sales and profit forecasts, but warned that the impact from the spreading coronavirus crisis was not yet included in their figures.
"Let me express my sincere regrets to shareholders. The company results are weaker than expected," said CEO Makoto Uchida, who announced there would be no dividend paid.
Net profit for April-December dropped 87.6 per cent to 39.3 billion yen ($358 million), on sales down 12.5 per cent at 7.5 trillion yen for the period.
On a quarterly basis, Nissan suffered a net loss of 26.1 billion yen for the three months to December, the first third-quarter loss in more than a decade.
The profit decline was mainly due to weak sales in the United States as well as Japan, where the impact of the nation's sales tax hike hit auto demand, the company said in a statement.
"Nissan is in a very severe situation at a time when competition in the global auto market is further intensifying," said Satoru Takada, auto analyst at TIW, a Tokyo-based research and consulting firm. -AFP