Japan's Nissan slashed its annual outlook after posting a 99% decline in first-quarter operating profit due to weak US sales performance on Thursday, sending its shares sharply lower.
Operating profit for the April-June period totalled 995m yen (R119.95m), compared with 128.6bn yen (R15.5bn) in the same period a year earlier, far short of the average estimate of 164.4bn yen (R19.82bn) in a poll of five analysts by LSEG.
The carmaker cut its operating profit forecast for the financial year by 17% to 500bn yen R60.2bn) from 600bn yen (R72.3bn).
The weak result was “mainly due to an increase in selling expense resulting from increased competition,” it said in a filing.
Nissan's shares were hit hard after the results, at one point falling some 11%. They were down 6.7% in late afternoon trade in Tokyo.
The tribulations in the US — it said US sales dropped primarily due to an ageing portfolio and a market shift to hybrid vehicles — add to Nissan's woes in China, where it has been looking to regain ground amid tough competition from local giants.
The Yokohama-based carmaker said last month it halted production at one of eight factories it operates through a joint venture with Chinese partner Dongfeng Motor as it seeks to optimise operations.
Nissan Q1 profit falls 99%, shares hammered
Image: Tomohiro Ohsumi/Getty Images
Japan's Nissan slashed its annual outlook after posting a 99% decline in first-quarter operating profit due to weak US sales performance on Thursday, sending its shares sharply lower.
Operating profit for the April-June period totalled 995m yen (R119.95m), compared with 128.6bn yen (R15.5bn) in the same period a year earlier, far short of the average estimate of 164.4bn yen (R19.82bn) in a poll of five analysts by LSEG.
The carmaker cut its operating profit forecast for the financial year by 17% to 500bn yen R60.2bn) from 600bn yen (R72.3bn).
The weak result was “mainly due to an increase in selling expense resulting from increased competition,” it said in a filing.
Nissan's shares were hit hard after the results, at one point falling some 11%. They were down 6.7% in late afternoon trade in Tokyo.
The tribulations in the US — it said US sales dropped primarily due to an ageing portfolio and a market shift to hybrid vehicles — add to Nissan's woes in China, where it has been looking to regain ground amid tough competition from local giants.
The Yokohama-based carmaker said last month it halted production at one of eight factories it operates through a joint venture with Chinese partner Dongfeng Motor as it seeks to optimise operations.
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