Nissan’s Turnaround Efforts Pay Off, Full-Year Operating Loss Expected to Narrow
Nissan significantly lowered its full-year loss forecast on Thursday and reported an unexpected profit for the third quarter, suggesting that the struggling Japanese automaker's turnaround efforts are making progress.
After years of turmoil, Nissan Motor is fighting to reverse its fortunes. Under the leadership of CEO Ivan Espinosa, Nissan has implemented a comprehensive turnaround plan that includes reducing its global production footprint and cutting 15% of its workforce. The company is still in talks with competitor Honda 7267.T regarding possible cooperation, while Honda itself has been hit hard by restructuring costs. The two automakers abandoned merger talks last year, which could have created a $60 billion automotive giant.
At the earnings press conference, Espinosa stated that Nissan will continue to maintain fiscal discipline. Espinosa said recent discussions with Honda have mainly focused on how the two manufacturers can cooperate in North America. During President Trump's administration, both automakers were severely affected by U.S. tariffs.
Nissan now expects an operating loss of 60 billion yen ($390 million) for the year ending in March, compared to a previous forecast of a 275 billion yen loss.
The company reported that operating profit for the October-December quarter fell 44% to 17.5 billion yen, reflecting strong headwinds from U.S. tariffs.
However, this was better than the 81 billion yen loss predicted by six analysts in an LSEG survey.
Editor: Liu Mingliang
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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