On Thursday, Nissan slashed its full-year operating forecast by 43% after the company posted its first quarterly loss in a decade.
The company for the October-December quarter posted a net loss of 26.1 billion yen ($238 million). For the latest quarter, it showed an operating profit of 23 billion well short of the estimated 59 billion yen with quarterly sales falling by 18% to 2.5 trillion yen as compared to the predicted 2.7 trillion yen.
The global sales for the company fell by 11% in this period with sales dropping by 18% in the USA and 0.6% in China. The company is predicted to sell 5.05 million cars this year, the lowest since 2013. It has reduced its full-year operating profit prediction to 85 billion, compared to the original estimate of 150 billion yen.
Initially, the company had predicted an operating profit of 230 billion yen for the fiscal year through March but curbed in the last quarter. Last year, it earned 318 billion yen, the lowest yearly income in a decade.
Makoto Uchida, Nissan’s new CEO and its third since last September, said:
We are making progress, but sales volumes have been weak so we need to do more restructuring than initially planned.
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