The Nissan ARIYA on the EV check observe on the New York International Auto Show on March 28, 2024.
Danielle DeVries |
Shares of Japanese automaker Nissan tumbled as a lot as 10.12%, a day after the corporate posted downbeat quarterly outcomes and mentioned it will cut back world manufacturing capability by 20%.
Shares of the corporate — which additionally introduced plans to chop workers by 9,000 — hit a four-year intraday low of 368.5 yen on Friday, their weakest since September 2020.
Nissan launched its second-quarter results ended September on Thursday, which confirmed that it recorded a 9.3 billion yen (about $62 million) internet loss, a reversal from the 190.7 billion yen internet revenue it made in the identical quarter final 12 months.
Operating revenue within the second quarter plunged virtually 85% year-on-year to 31.9 billion yen, whereas income dropped 5% to 2.99 trillion yen.
Nissan additionally sharply lowered its full-year outlook, reducing its income projection to 12.7 trillion yen from 14 trillion yen, whereas additionally decreasing its working revenue forecast to 150 billion yen from 500 billion yen.
The firm board selected to not pay an interim dividend, and likewise scrapped the year-end dividend forecast.
Nissan mentioned that the corporate was “facing a severe situation” and can take “urgent measures to turnaround its performance.”
These measures embody discount in headcount, different value cuts in addition to plans to “rationalize its asset portfolio, and prioritize capital expenditures and investments in research and development.”
It aims to reduce fastened prices by 300 billion yen and variable prices by 100 billion yen, in comparison with its 2024 monetary 12 months.
The firm mentioned it will additionally undertake a construction that permits it to be sustainably worthwhile and cash-generative by its 2026 fiscal 12 months, even with annual gross sales of three.5 million models.
Sales volume for the first half of its fiscal 12 months got here in at 1.6 million models, down 1.6% in comparison with the identical interval a 12 months in the past.
Nissan added that CEO Makoto Uchida will voluntarily forfeit 50% of his month-to-month compensation from November, whereas different government committee members can even voluntarily go for pay cuts.
