tyb
Nissan Drops After Forecasting $4.5 Billion Operating Loss
Nissan Motor Co. is forecasting a wider-than-projected operating loss for the current fiscal year, as the Japanese automaker seeks to dig itself out of the hole by shutting assembly lines, cutting jobs and conserving cash. Nissan Motor Co. is forecasting a wider-than-projected operating loss for the current fiscal year, as the Japanese automaker seeks to dig itself out of the hole by shutting assembly lines, cutting jobs and conserving cash. The operating loss for the year ending March will be 470 billion yen ($4.5 billion), compared with analysts’ average prediction for a 216 billion-yen loss and a 40.5 billion-yen loss in the prior year. The Yokohama-based company also plans to skip its dividend, it said in a statement Tuesday. The shares declined as much as 7.3% in early trading Wednesday.
The Japanese carmaker is struggling to restore profitability and sales after reporting its biggest loss in two decades. Nissan has been mired in turmoil since the 2018 arrest of former Chairman Carlos Ghosn, who had pushed for volume growth. The company is seeking to revive an aging lineup and cut costs in an effort to improve margins and bring more cash into operations. Even so, Nissan’s two biggest rivals in Japan, Toyota Motor Corp. and Honda Motor Co., are seen remaining profitable this year.
“The risks to the downside are greater than the risks to the upside,” said Takeshi Miyao, an analyst at Carnorama in Tokyo. “The are seeking to paint a picture of a V-shaped recovery, but they won’t be able to make up for the impact of the coronavirus, no matter how hard management tries.”
Nissan reported a 154 billion-yen operating loss for the April-June quarter, compared with analysts’ prediction for a loss of 253 billion yen, as the automaker stepped up cost cuts to make it through a pandemic-induced drop in sales. Revenue fell 51% to 1.17 trillion yen in the April-June quarter, when most major economies went into lockdown to slow the spread of the Covid-19 virus.
The halt in dividend payouts is a blow to Renault SA, the Japanese carmaker’s biggest shareholder with a 43% stake and its partner in a global automaking alliance. Nissan’s performance during the latest quarter will reduce Renault’s net income by 1.2 billion euros, the automaker said in a statement. Renault is set to announce results on Wednesday.
Nissan will shut three production lines and cut about 14,000 jobs globally, up from 12,500 announced a year ago, a person with knowledge of the matter has said. It also will close two rented offices near Nissan’s headquarters in Yokohama due to the pandemic, said the person, who asked not to be identified because the information isn’t public.
Nissan expects to sell 4.13 million vehicles during the current fiscal year, 16% less than the 4.93 million units in the prior period.
“It would be meaningless if the cuts are only effective in the short term,” said Bloomberg Intelligence analyst Tatsuo Yoshida. “I’m interested in how sustainable and meaningful the cost cuts are.”
Mitsubishi Motors Corp., which partners with Nissan and Renault, predicted a bigger-than-estimated full-year loss Monday, and announced plans to end production of its Pajero SUV by shutting down a plant in Gifu prefecture.
https://www.msn.com/en-us/money/companies/nissan-drops-after-forecasting-45-billion-operating-loss/ar-BB17ikoQ
Add in the Yen is at a four month high against the dollar
#12937
>>10108835, >>10109191 d'oh and ghosty bake
notables, not endorsements
>>10108985 State-by-state breakdown of federal aid per COVID-19 case April 14th, 2020
>>10109008 ‘Demon sperm’ and ‘Alien DNA’ trend, inducing eye-rolls following media dive into doctor touting HCQ as Covid-19 cure
>>10109060, >>10109117 OOPS! Politico Publishes Article Claiming Biden Has Picked Kamala Harris as His Running Mate – Then Panics and Scrubs Piece!-gatewaypundit
>>10109139 FDA List of Potentially Dangerous Hand Sanitizers with Methanol Expands-breitbart
>>10109165 Nissan Drops After Forecasting $4.5 Billion Operating Loss-b'berg via msn
>>10109299 Dan Scavino twat
>>10109310, >>10109371, >>10109377 USMC Twat: I Spy
>>10109365 POTUS Doubles Down on "Demon" Sperm Doc-dailybeast
>>10109408 WH twat: Operation Warp Speed is a historic partnership between the federal government, scientific community, & private sector to develop a safe COVID-19 vaccine in record time.
o7