— Nissan Motor is expected to report a more than 90% plunge in first-quarter operating profit on Thursday, Nikkei has learned, and will cut up to 7% of its global workforce as it braces for one of the worst years in a decade.
Operating profit in the April to June period will come in at less than 10 billion yen, down from 109.1 billion yen ($1 billion) for the same period a year earlier.
The Japanese automaker issued a statement saying that it expects the result “to be close to the figure reported” in the Nikkei article, which it described as “speculative.”
Sales in the U.S., one of Nissan’s biggest markets, continue to fall, while the costs of developing electric vehicles and autonomous driving technologies are weighing heavily on profits.
The company is now scrambling to reduce production capacity and intends to increase the planned 4,800 job cuts announced in May to more than 10,000 out of a 139,000-strong workforce.
Data from QUICK FactSet shows the automaker’s operating profit also fell below 10 billion yen for January to March. The last time Nissan’s operating performance dropped so sharply was in January-March 2009, when the company recorded a loss of 200 billion yen.
Nissan is scheduled formally to announce the first-quarter results on Thursday afternoon. Continue reading »