On Tuesday, Nissan reports that it expects an annual loss of more than $4.5 billion for the second consecutive year as the COVID-19 pandemic paralysed the company’s efforts to bounce back from a deep fall in sales.
The company predicts an annual operating loss of 470 billion Yen, which is more than double the estimate of 262.8 billion Yen by a team of 20 experts and analysts by Refinitiv. The forecasted loss is also the biggest for the company since it has financial records, i.e. 1977.
Moreover, the motor company added that their global car sales would fall by more than 16.3% and revenue shall also fall by one fifth, reaching 7.8 trillion yen.
Earlier this year, Nissan posted an operating loss of more than 94.8 billion Yen from January to March and 153.9 billion Yen in the first financial quarter of 2020.
Japan’s no. 2 automaker is now left with a dead portfolio, depressing margins, and lacklustre brand due to the company’s aggressive efforts to expand, particularly in the emerging markets.
On Tuesday, the sales of Mitsubishi Motor Corporation, which is also a junior third partner of Nissan-Renault duo, falling nearly 70% in the first financial quarter and thus saw its share plunge around 13%.
Nissan is struggling in its performance since the ouster of its former CEO Carlos Ghosn, which is now a fugitive criminal in Tokyo on charges of financial misconduct. However, Carlos denies all the claims and charges. In May this year, the company also announced a restructuring plan in the form of a reduction in production factories and car model range.