Nissan slashes full-year profit forecast after sales slump

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© Reuters. Nissan Motor Co CEO Makoto Uchida speaks during a news conference at its headquarters in Yokohama© Reuters. Nissan Motor Co CEO Makoto Uchida speaks during a news conference at its headquarters in Yokohama

By Naomi Tajitsu

TOKYO (Reuters) – Nissan Motor Co (T:) on Thursday cut its annual operating profit forecast by 43%, hit by a slump in vehicle sales and heaping more pressure on new management to fix a company still reeling from the scandal surrounding former leader Carlos Ghosn.

Nissan’s sharply waning earnings power has already prompted plans to slash jobs, close manufacturing sites and drop product offerings as the automaker steps back from an aggressive pursuit of market share championed by Ghosn.

The dismal outlook also contrasts with upbeat forecasts from rivals Toyota Motor Corp (T:) and Honda Motor Co (T:) and comes just months after company veteran Makoto Uchida was named as Nissan’s third CEO since September.

Japan’s No. 2 automaker now expects operating income of 85 billion yen ($775 million) for the year to March, down dramatically from a previous outlook for 150 billion yen.

It compares with an average forecast for 134.5 billion yen from 20 analysts polled by Refinitiv.

Nissan said it would not pay a dividend for the second half of the year, and that the full-year dividend would be 10 yen per share.

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