Nissan forecasts big loss, to cut 20,000 jobs

Nissan forecasts big loss, to cut 20,000 jobs

By Reuters / AFP

Tokyo: Nissan Motor Co, Japan’s No.3 carmaker, posted a big quarterly loss on Monday and warned it would lose money this year, marking its first fall into the red since chief executive Carlos Ghosn took the reins in 1999.

For the year to 31 March, Nissan now expects an operating loss -- its first in 14 years -- of 180 billion yen ($2 billion) instead of the 270 billion yen profit it projected three months ago. Consensus forecasts from 19 analysts had put the loss at 70 billion yen.

Nissan, 44% owned by Renault SA, expects its net loss at 265 billion yen instead of its earlier projection of a 160 billion yen profit.

Nissan has doubled its plans for production cuts for the business year to end-March since its last forecast three months ago, reducing output by at least 10% from plans at the start of the year due to a global slump in car sales.

Its shares have fallen more than 70% in the last 12 months, while Toyota and Honda are down 47% and 30%. Nissan has shed $12 billion in market value since Ghosn arrived from Renault to rescue Nissan in 1999.

For October-December, Nissan made an operating loss of 99.2 billion yen and a net loss of 83.2 billion yen. A year ago, it made an operating profit of 211.9 billion yen and net profit of 132.2 billion yen.

Nissan’s shares are the worst performer in the domestic auto sector in the year to date, falling 13% against a 7% rise in Tokyo’s transport sub-index.