Adding to Ghosn woes\, Nissan slashes profit outlook to near-decade low

0
shares
 

Adding to Ghosn woes, Nissan slashes profit outlook to near-decade low

Nissan slashed its full-year profit forecast to its lowest in nearly a decade due to weakness in the United States.

It's more gloomy news for the automaker as it adjusts to life without former boss Carlos Ghosn.

Nissan expects operating profits for the year ended March to drop 45 percent versus a year earlier.

The company says it's now likely to book a profit of $2.84 billion, from a previous forecast for $4 billion.

The dismal outlook comes as sales took a hit in the aftermath of Ghosn's arrest and dismissal on financial misconduct charges.

This is the second cut to the car maker's operating profit forecast in two months, and adds pressure on Chief Executive Hiroto Saikawa.

He's working to draw a line under Ghosn's legacy by overhauling corporate governance and seeking a more equal footing with Renault, Nissan's biggest shareholder.

Falling profit has been a headache since before Ghosn was first arrested in November on allegations of financial misconduct.

Currently in jail following his fourth arrest, Ghosn - who denies wrongdoing - could learn as early as Wednesday whether he'll be released on bail for a second time.

Nissan is scheduled to announce its full-year earnings results on May 14.




You Might Like