Nissan Motor posted a smaller-than-expected operating loss for the first quarter, offering a glimmer of hope for the embattled Japanese automaker’s turnaround efforts following the collapse of merger talks with Honda earlier this year.
The company reported an operating loss of ¥79.1 billion ($545 million) for the three months ended June 30, significantly better than its forecast of ¥200 billion. However, Nissan still posted a net loss of ¥115.8 billion ($799 million) on revenue of ¥2.7 trillion ($18.6 billion), underscoring the depth of its financial struggles.
The results come after Nissan recorded a devastating ¥671 billion ($4.6 billion) net loss for fiscal 2024, its worst performance in over two decades. The automaker’s prospects for a quick recovery were dashed in February when $60 billion merger talks with Honda collapsed over governance disputes.
Despite the improved quarterly figures, challenges persist. Nissan projects an operating loss of ¥180 billion ($1.24 billion) for the first half of fiscal 2025, while maintaining its full-year revenue forecast at ¥12.5 trillion.
The company’s “Re:Nissan” recovery plan has begun yielding some results, with fixed cost reductions delivering ¥30 billion ($207 million) in savings during the quarter. Management expects to cut 9,000 jobs and consolidate manufacturing facilities as part of its restructuring efforts.
Nissan maintains ¥3.1 trillion ($21.4 billion) in liquidity plus ¥1.8 trillion ($12.4 billion) in unused credit lines, providing breathing room as it targets profitability by fiscal 2026.
