Catenaa, Thursday, April 24, 2025- Nissan Motor expects a net loss of $4.9 billion to $5.2 billion for the financial year, which is over 775% increase from the previous estimate as the company restructures.
In a filing to the Tokyo Stock Exchange on Thursday, Nissan Motor said that operating profit for fiscal year 2024 is expected to decrease by 29.2% from the previous forecast to $600 million.
“This is primarily due to changes in the competitive environment and deterioration in sales performance,” the statement said.
Japan’s third largest automaker gave a previous net loss forecast for financial year 2024 at $560 million.
The new forecast would be the company’s largest ever loss and comes as new CEO Ivan Espinosa attempts to turn around Japan’s third largest automaker, which is cutting jobs, reducing capacity and closing plants.
Nissan booked impairments of more than $3.5 billion in North America, Latin America, Europe and Japan after reviewing production assets with additional restructuring costs to total more than 60 billion yen.
“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 $60 billion car company in February. The deal broke apart due to Honda’s proposal to make Nissan a subsidiary, media reports said.
The automaker, which said it will forego a dividend for the full year, will report its earnings on May 13.
Nissan stock closed on Thursday in Tokyo with gains of 0.58%, stock which is down by over 31% so far in the year has gained by 4.4% in the last five trading days.
