Crisis-hit Japanese automaker Nissan warned on Tuesday of a massive $6.4 billion net loss for the current fiscal year as it reels from the impact of the corona virus pandemic. Nissan, which had delayed an annual forecast because of ongoing uncertainty, issued the warning as it reported a first-quarter net loss of 285.6 billion yen ($2.7 billion) on plunging sales.
“These results… reflect a full quarter of COVID-19 disruption that we knew would undermine our performance in key markets,” chief operating officer Ashwani Gupta said announcing the results.”As you can see, the pandemic had a severe impact on our operations,” he added.
Nissan said the value of global sales plunged 50.5 percent, with falls across markets including Japan, China and the United States. And it warned the woes would continue, forecasting annual sales will plunge 21 percent to 7.8 trillion yen following a 15 percent drop the previous year.
“As a result of the impact of the corona virus pandemic worldwide, the overall demand dropped to about half in this first quarter compared to last year,” chief operating officer Makoto Uchida told reporters.
The entire industry is struggling, said Satoru Takada, an auto analyst at Tokyo-based research and consulting firm TIW.”The new corona virus has hit both supply and demand hard. Production is recovering but consumer appetite remains stagnant,” he told AFP before Nissan announced its results.”The outlook remains unclear amid concerns over a second wave or a third wave of the pandemic. The end of the tunnel is not yet in sight,” he warned.
“Nissan’s performance remains in low gear, trailing its disastrous results for the previous fiscal year,” he said.”We can’t see a clear sign of its full recovery… It remains at a crucial stage.”
Nissan executives put a brave face on the results, citing recovery in sales in China and their commitment to the so-called Nissan Next transformation plan.”This remains the right plan at the right time to address our challenges,” Gupta said
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