Nissan Motor Co. slashed its annual profit forecast and now expects a net loss of up to ¥750 billion ($5.0 billion) for the fiscal year ending March 2025, largely due to production asset impairments across four regions.
The Japanese carmaker reduced its sales volume target to 3.35 million units while forecasting operating profit of ¥85 billion on revenue of ¥12.6 trillion. The company cited deteriorating sales performance and changes in the competitive landscape for the downward revision.
Impairment charges exceeding ¥500 billion will affect assets in North America, Latin America, Europe, and Japan. Restructuring costs related to the company’s turnaround effort will add another ¥60 billion burden.
Chief Executive Ivan Espinosa characterized the revision as a “prudent step” following a thorough review of the company’s performance and asset values. He noted that despite the challenges, Nissan has “significant financial resources” to support its recovery plan.
The automaker maintains ¥1.498 trillion in net cash and ¥3.4 trillion in total available liquidity, including ¥2.2 trillion in cash equivalents and ¥1.2 trillion in loans to sales finance companies. Automotive debt remains stable at ¥1.9 trillion.
Nissan will release full fiscal year 2024 results on May 13.
