Nissan might report its first quarterly loss in over a decade Thursday attributable to falling sales, sources familiar with the company said, including more pressure on efforts to rebuild the company after Carlos Ghosn’s ouster.
Deteriorating profits stress the challenges facing Nissan, which is unwinding most of the expansionist strategies championed by former CEO and Chairman Ghosn by cutting jobs, production sites, and product choices to save money and ensure its durability.
In addition to slumping sales, manufacturing disruptions caused by China’s coronavirus epidemic may also drag earnings lower.
Three senior delegates at Japan’s #2 auto manufacturer said that they anticipate poor results on Thursday, with one of them calling the figures “depressed.”
Two of the delegates cautioned that there is the possibility of an operating loss, which might be the first quarterly loss since the interval ending in March 2009.
Nissan stated it couldn’t comment on its financial results forward of its official statement.
The firm is likely to report operating revenue of 48.6 billion yen ($442.5 million) for the quarter concluding in December, less than half the 103 billion yen revenue a year ago, based on SmartEstimate’s survey of three analysts, who reviewed their forecasts in January.
However, these forecasts had been issued earlier than the release of the December vehicle sales figures on January 30, which show third-quarter sales plunged by 11% from the year-earlier period. That’s the most significant quarterly drop in its current sales downturn that started two years ago.
That sales fall led one auto equities analyst based in Japan to dismiss his estimation and also warn that Nissan might post a loss.