Summary
- Nissan expects 60 bln yen operating loss for fiscal year
- Nissan and Honda remain in collaboration talks, including for North America
- Nissan reports surprise Q3 y/y profit amid turnaround efforts
YOKOHAMA, Japan, (Reuters) – Nissan sharply trimmed its outlook for a full-year loss on Thursday and reported a surprise profit in the third quarter, as the struggling Japanese automaker’s turnaround appears to be gaining traction.
Nissan is fighting to right itself after years of turmoil. Under CEO Ivan Espinosa it has laid out a sweeping turnaround plan that includes reducing its global manufacturing footprint and cutting its workforce by 15%.
It remains in talks to collaborate with rival Honda, which has been clobbered by restructuring costs of its own. The two carmakers last year walked away from merger talks that would have created a $60 billion automotive powerhouse.
NISSAN, HONDA FOCUS ON U.S. COOPERATION
Espinosa told an earnings briefing that Nissan remained committed to fiscal discipline. The latest discussions with Honda were mostly focused on how the two manufacturers could cooperate in North America, Espinosa said. Both automakers have been badly hit by U.S. tariffs under President Donald Trump.
Nissan now expects an operating loss of 60 billion yen ($390 million) for the year to the end of March, compared with its previous forecast for a 275 billion yen shortfall.
In the final quarter, it is likely to report a loss in its core business alongside tax-related accounting and restructuring charges, CFO Jeremie Papin said, adding the outlook implies a 50 billion yen operating loss for the quarter.
The company reported a 44% fall in operating profit to 17.5 billion yen for the October-December quarter, reflecting strong headwinds from U.S. tariffs.
That was, however, better than the 81 billion yen loss forecast by six analysts in a survey by LSEG.
Nissan also said it expected to book a net loss of 650 billion yen for the financial year ending March, which would mark the second year it ended in the red following a 670.9 billion yen for the 2024 fiscal year.
Espinosa said it was unfortunate, but also expected, the company will record a net loss due to its restructuring. “We have to reset the clock of the company,” he said.
($1 = 153.0100 yen)
Reporting by Daniel Leussink; Editing Neil Fullick, David Dolan, Edwina Gibbs and Louise Heavens
