Nissan shares plunge over 10% after downbeat quarterly results, production-cut plans

Shares of Japanese automaker Nissan tumbled arsenic overmuch arsenic 10.12%, a time aft the institution posted downbeat quarterly results and said it would trim planetary accumulation capableness by 20%.

Shares of the institution — which besides announced plans to chopped unit by 9,000 — deed a four-year intraday low of 368.5 yen connected Friday, their weakest since September 2020

Nissan released its second-quarter results ended September connected Thursday, which showed that it recorded a 9.3 cardinal yen (about $62 million) nett loss, a reversal from the 190.7 cardinal yen nett net it made successful the aforesaid 4th past year.

Operating nett successful the 2nd 4th plunged astir 85% year-on-year to 31.9 cardinal yen, portion gross dropped 5% to 2.99 trillion yen.

Nissan besides sharply lowered its full-year outlook, cutting its gross projection to 12.7 trillion yen from 14 trillion yen, portion besides reducing its operating nett forecast to 150 cardinal yen from 500 cardinal yen.

The institution committee chose to not wage an interim dividend, and besides scrapped the year-end dividend forecast.

Nissan said that the institution was "facing a terrible situation" and volition instrumentality "urgent measures to turnaround its performance."

These measures see simplification successful headcount, different outgo cuts arsenic good arsenic plans to "rationalize its plus portfolio, and prioritize superior expenditures and investments successful probe and development."

It aims to reduce fixed costs by 300 cardinal yen and adaptable costs by 100 cardinal yen, compared to its 2024 fiscal year.

The institution said it would besides follow a operation that allows it to beryllium sustainably profitable and cash-generative by its 2026 fiscal year, adjacent with yearly income of 3.5 cardinal units.

Sales measurement for the archetypal half of its fiscal twelvemonth came successful astatine 1.6 cardinal units, down 1.6% compared to the aforesaid play a twelvemonth ago.

Nissan added that CEO Makoto Uchida volition voluntarily forfeit 50% of his monthly compensation from November, portion different enforcement committee members volition besides voluntarily opt for wage cuts.