Nissan Set to Report First Annual Deficit in 11 Years -- WSJ

By Kosaku Narioka

This article is being republished as part of our daily reproduction of WSJ.com articles that also appeared in the U.S. print edition of The Wall Street Journal (April 29, 2020).

Nissan Motor Co. said it expected to record a net loss for the fiscal year just ended because of the initial impact of the coronavirus pandemic, its first annual loss in 11 years.

The car maker had forecast in February a small profit for the year that ended in March but now projects a net loss of roughly Yen85 billion to Yen95 billion ($792 million to $885 million) for the period. It would be Nissan's first annual loss since the year ended March 2009, reflecting the global financial crisis that started in 2008.

Nissan said slower car sales, greater loss provisions for car financing and lower earnings of affiliates contributed to the lowering of its forecast.

The company had planned to release its fiscal-year results and its midterm business plan in mid-May but said Tuesday it would push that back to May 28.

The coronavirus pandemic is adding to the challenge of turning around Nissan following the arrest of former chairman Carlos Ghosn in November 2018. Even before the virus hit, the company was battling falling sales in the U.S. and other key markets.

Nissan said its global sales in March fell 43% from a year earlier. Sales in the U.S., traditionally its most profitable market, fell 48% in March.

Write to Kosaku Narioka at kosaku.narioka@wsj.com

(END) Dow Jones Newswires

April 29, 2020 02:47 ET (06:47 GMT)

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