Nissan Motor sees a record net loss of ¥700bn-¥750bn (R91.71bn-R98.25bn) for the financial year that ended in March, it said on Thursday, due to impairment charges as the struggling carmaker restructures.
That compares with a previous forecast for a loss of ¥80bn (R10.50bn). It would be the company's largest loss and comes as new CEO Ivan Espinosa attempts to turn around Japan's third-largest carmaker, which is cutting jobs, reducing capacity and closing plants.
Nissan booked impairments of more than ¥500bn (R65.59bn) in North America, Latin America, Europe and Japan after reviewing production assets with additional restructuring costs to total more than ¥60bn (R7.87bn).
“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,” Espinosa, who took the helm this month, said in a statement.
Nissan and Honda ended merger talks to forge a $60bn (R1.12-trillion) car company in February. The deal broke apart due to Honda's proposal to make Nissan a subsidiary, sources have said.
Nissan said it sees full-year operating profit of ¥85bn (R11.15bn), around 30% lower than its previous forecast.
The carmaker, which said it will forgo a dividend for the full year, will report its earnings on May 13.
Nissan sees record loss as restructuring bites
Image: Tomohiro Ohsumi/Getty Images
Nissan Motor sees a record net loss of ¥700bn-¥750bn (R91.71bn-R98.25bn) for the financial year that ended in March, it said on Thursday, due to impairment charges as the struggling carmaker restructures.
That compares with a previous forecast for a loss of ¥80bn (R10.50bn). It would be the company's largest loss and comes as new CEO Ivan Espinosa attempts to turn around Japan's third-largest carmaker, which is cutting jobs, reducing capacity and closing plants.
Nissan booked impairments of more than ¥500bn (R65.59bn) in North America, Latin America, Europe and Japan after reviewing production assets with additional restructuring costs to total more than ¥60bn (R7.87bn).
“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,” Espinosa, who took the helm this month, said in a statement.
Nissan and Honda ended merger talks to forge a $60bn (R1.12-trillion) car company in February. The deal broke apart due to Honda's proposal to make Nissan a subsidiary, sources have said.
Nissan said it sees full-year operating profit of ¥85bn (R11.15bn), around 30% lower than its previous forecast.
The carmaker, which said it will forgo a dividend for the full year, will report its earnings on May 13.
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