Yokohama (Japan) (AFP) – Crisis-hit Japanese automaker Nissan Tuesday slashed its full-year sales and profit forecast as it struggles with weak demand in Japan, the US and Europe, as well as the arrest of former boss Carlos Ghosn.
Nissan downgraded its net profit forecast to 110 billion yen ($1 billion) for the fiscal year to March 2020, compared with an earlier estimate of 170 billion yen.
Full-year sales are now estimated at 10.6 trillion yen, down from 11.3 trillion yen previously forecast.
Incoming chief financial officer Stephen Ma said: “Sales in China outpaced the market but sales in other key regions including the US, Europe and Japan underperformed in those markets. This resulted in the overall decrease of our market share.”
Net profit for the six months to September plunged 73.5 percent to 65.4 billion yen on sales down 9.6 percent at 5.0 trillion yen.
It was its first earnings announcement since Nissan named Makoto Uchida as new chief executive last month, elevating the insider heading the firm’s China unit as it overhauls its leadership after the Ghosn scandal.
The appointment, to take effect on December 1, came after months of turmoil for the automaker in the wake of the arrest of former chief Ghosn on allegations of financial misconduct.
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