Nissan Motor Slips To Loss In Q1; Sees Lower Business Volume In FY20
(RTTNews) - Nissan Motor Co., Ltd. (NSANF.PK, NSANY.PK) reported that its first quarter net loss attributable to owners of the parent was 285.6 billion yen compared to net income of 6.4 billion yen in the previous year.
Global industry-wide auto sales in the first quarter fell by almost half amid the COVID-19 pandemic, impacting Nissan's sales significantly.
The company suspended production at manufacturing sites around the world to limit the spread of COVID-19. Nissan's plants have since resumed operations but face reduced utilization of their capacity due to lower sales. The company's performance continues to be impacted by the challenging business climate, company said.
Nissan expects a lower business volume in fiscal year 2020. It forecasts global total industry volume to decrease 16% from a year earlier to 72.04 million vehicles.
For the full year, Nissan's global retail volume is expected to decline 16.3% to 4.125 million vehicles, on par with the market trend. The company expects its global market share to achieve 5.73% which is the same level as previous fiscal year.
Nissan noted that it will forgo distribution of dividends for fiscal year 2020, due to the challenges in profitability and free cash flow.
Looking ahead for fiscal year 2020, the company projects net loss attributable to owners of the parent to be 670 billion yen, operating loss of 470 billion yen, and net revenue of 7.80 trillion yen.
Operating loss for the first-quarter was 153.9 billion yen, compared to operating profit of 1.6 billion yen in the previous year.
Quarterly net revenue was 1.17 trillion yen, down from 2.37 trillion yen in the prior year.
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