Nissan sees $4.5bn annual operating loss as pandemic hinders turnaround efforts

A pedestrian wearing a protective mask walks past the Nissan Motor Co. headquarters in Yokohama, Japan, on Tuesday, July 28, 2020. Nissan is struggling to restore profitability and sales after the November 2018 arrest of its former chairman Carlos Ghosn and because a lack of new models left it ill-prepared to face a downturn in global vehicle demand amid the coronavirus pandemic.
A pedestrian wearing a protective mask walks past the Nissan Motor Co. headquarters in Yokohama, Japan, on Tuesday, July 28, 2020. Nissan is struggling to restore profitability and sales after the November 2018 arrest of its former chairman Carlos Ghosn and because a lack of new models left it ill-prepared to face a downturn in global vehicle demand amid the coronavirus pandemic.
Image: GETTY IMAGES/ AKIO KON

Nissan Motor Co said on Tuesday it expects to make an annual operating loss for a second straight year, as the coronavirus pandemic hampers its efforts to emerge from a deep slump in sales.

It forecast an operating loss of 470 billion yen ($4.5bn or roughly R74.38bn), its biggest according to Nissan data that goes back to 1977 and much larger than a consensus estimate of a 262.8 billion yen (roughly R41.1bn) loss drawn from 20 analysts polled by Refinitiv.

Years of aggressive expansion, particularly in emerging markets, has left Japan's No 2 car maker with dismal margins, an ageing portfolio and a tarnished brand.

Still reeling from the 2018 arrest and ouster of former CEO Carlos Ghosn, Nissan unveiled a far-reaching restructuring plan in May that calls for a dramatic reduction in production lines and its vehicle model range.


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