Nissan cuts outlook after worst Q2 in 15 years

Marco Green
November 14, 2019

Ltd., with brands likes of Nissan, Infiniti and Datsun, had revealed its quarterly earnings' report for the third quarter of 2019 which had reported a 70 per cent drop in operating profit and slashed its full-year forecast to an eleven-year-low figure, nearly entirely hurt by a strong Japanese Yen alongside waning sales. With Ghosn out, the company saw global sales drop, along with consumer confidence. The new forecast means earnings for the full year will be at their worst in 11 years.

Nissan has announced that its latest quarterly profit figures are 70% down on past year.

Nissan shares, down 19 per cent this year, closed up 1 per cent at 714.5 yen before the results announcement.

"One of the key pillars of that plan was recovery in the U.S. And for that first pillar you can see we are well on track".

Incoming important fiscal officer Stephen Ma defined: "Gross sales in China outpaced the sector but revenue in other important locations which includes the US, Europe and Japan underperformed in people marketplaces".

"We have reassessed our sales outlook for China and other markets", he said, adding that a stronger yen was also weighing on its forecast.

Nissan, whose financial performance has been in the doldrums for almost two years, cut its forecast for operating profit to ¥150 billion in the year through March 2020, from a previous forecast of ¥230 billion.

As a result, Nissan cut its forecast for global retail sales to 5.2 million vehicles, down from a previous forecast for 5.5 million, bracing for its worst annual sales in six years.

Nissan, which will launch a new management team led by newly appointed top executive Makoto Uchida on December 1, aims to depart from the aggressive expansion long pursued by Ghosn, who relied on sales incentives in the United States to boost the company's sales volume. In addition to Ma taking over as the new CFO, the executive team has undergone a significant makeover in recent weeks. The automaker will hold an extraordinary shareholders meeting on February 18, 2020, to vote on a proposal for Uchida and other members of the new executive team to become company directors.

The automaker said it would hold an extraordinary shareholders meeting on February 18, 2020, to vote on a proposal for Uchida and other members of the new executive team to become company directors, while former Nissan CEO Hiroto Saikawa, outgoing interim CEO Yasuhiro Yamauchi and former Renault CEO Thierry Bollore were scheduled to vacate their director posts.

Other reports by Click Lancashire

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