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Nissan Surprises with Profit, Cuts Full-Year Loss Outlook
12 Feb
Summary
- Nissan now expects a 60 billion yen operating loss for the fiscal year.
- The automaker reported a surprise operating profit in the third quarter.
- Turnaround plan includes reducing global footprint and cutting workforce.
Nissan reported a surprise operating profit for the third quarter, leading the Japanese automaker to significantly trim its full-year loss forecast. The company now expects an operating loss of 60 billion yen for the fiscal year ending in March, a substantial reduction from its earlier projection of a 275 billion yen shortfall.
This positive financial development suggests that Nissan's sweeping turnaround plan, initiated by CEO Ivan Espinosa, is gaining momentum. The strategy focuses on reducing the automaker's global manufacturing footprint and cutting its workforce by 15%.
In the October-December quarter, Nissan's operating profit fell 44% year-on-year to 17.5 billion yen. This figure, however, surpassed analyst expectations and was better than the predicted 81 billion yen loss, signaling resilience amidst economic challenges.
