Connect with us

Hi, what are you looking for?

Capital Business
Capital Business

World

Nissan losses to top 100b yen

TOKYO, Jan 24 – Japan\’s Nissan Motor Co. is likely to post an operating loss of more than 100 billion yen ($1.1 billion) for the fiscal year to March, due to a global auto slump and a stronger yen, a daily reported on Saturday.

It will be Nissan\’s first dip into the red in 14 years and is in marked contrast to its operating profit of 790.8 billion yen the previous year, the Nikkei business daily said.

Depending on car sales for the January-March quarter, the loss could even swell to around 200 billion yen, the daily said.

Depressed demand alone will eat into operating profit by more than 200 billion yen, while the yen\’s appreciation is seen dragging down the result by some 100 billion yen, it said.

Japan\’s number three automaker will likely slash or forgo a dividend payment and take steps such as reducing new cars under development by 20 percent and cutting executive pay, the daily said.

Nissan, controlled by France\’s Renault, in October lowered its forecast for operating profit for the year to March 2009 to 270 billion yen from a previous projection of 550 billion yen.

Nissan has also slashed its planned production in the current year by 289,000 vehicles, or about 21 percent, from an original target of 1.388 million.

The expected operating loss would be the first under President Carlos Ghosn, who was sent by Renault to rescue its Japanese partner from the brink of bankruptcy in 1999.

Japanese makers have seen a dramatic reversal in their fortunes in recent months as recessions in major markets have battered demand for cars. Last month Toyota predicted its first ever annual operating loss.

Advertisement. Scroll to continue reading.
Click to comment
Advertisement

More on Capital Business

Executive Lifestyle

NAIROBI, Kenya, Mar 12 – The country’s super wealthy individuals are increasing their holding of bonds, gold and cash, a new report by Knight...

Ask Kirubi

NAIROBI, Kenya, Mar 9 – Businessman and industrialist Dr. Chris Kirubi has urged members of the public to exercise extreme caution when making any...

Ask Kirubi

NAIROBI, Kenya, Mar 24 – Businessman and industrialist Dr. Chris Kirubi is set to own half of Centum Investment Company PLC, following a go-ahead...

Headlines

NAIROBI, Kenya, Mar 18 – Commercial Banks have been ordered to provide relief to borrowers on their personal loans, with loans eligible from March...

Ask Kirubi

It is without a doubt that the COVID-19 pandemic has caught the whole world by surprise. Although its full impact is yet to be...

Kenya

NAIROBI, Kenya, Jun17 – Kenya’s tea leaves manufacturer Kericho Gold, has been awarded the Superbrands Seal by Superbrands East Africa for their quality variety...

Coronavirus

NAIROBI, Kenya, Apr 13 – As the local telecommunications industry gears up to roll out 5G networks in the country, the Communications Authority of...

Coronavirus

NAIROBI, Kenya, Mar 22 – Airtel Kenya is offering free internet access for students in order to enable continued learning at home in the...