Source: Reuters
Nissan Motor Co. has revised its financial outlook, forecasting a record net loss of ¥700 billion to ¥750 billion (approximately $4.91 billion to $5.26 billion) for the fiscal year ending March 2025. This significant downturn, surpassing the previously projected loss of ¥80 billion, is attributed to impairment charges resulting from an extensive restructuring process.
The company reported impairments exceeding ¥500 billion across its operations in North America, Latin America, Europe, and Japan. Additionally, restructuring costs have accumulated to over ¥60 billion. These measures are part of a broader strategy to streamline operations, including job cuts, capacity reductions, and plant closures, under the leadership of new CEO Ivan Espinosa, who assumed the role earlier this month.
Espinosa emphasized the necessity of these actions, stating, “We are taking the prudent step to revise our full-year outlook, reflecting a thorough review of our performance and the carrying value of production assets.”
In conjunction with the net loss forecast, Nissan has reduced its full-year operating profit estimate to ¥85 billion, approximately 30% lower than the previous forecast. The company also announced that it will forgo a dividend for the fiscal year.
Nissan is scheduled to release its full earnings report on May 13.
