JOIN USNissan posts $2.4 b loss
Japan’s No 3 automaker needs to offer new cars to compete with rivals, but a sharp sales slide and big losses have forced it to delay manufacturing projects and new models.
Carlos Ghosn, chief executive of both Nissan and France’s Renault SA, said there were signs of improved access to credit and a gradual return in consumer confidence, but this year would be another tough one. “Ending 2008 fiscal with better-than-expected results is good, but the absolute numbers show we still have significant challenges before us,” said Ghosn, adding the main objective was to return to positive free cash flow and an operating profit.
Ghosn predicted Nissan would return to profit in 2010/11 if external conditions stayed the same, and stressed Nissan/Renault was focused on making its partnership better rather than seeking opportunities in a US sector battered by an economic slowdown.
Nissan’s January-March operating loss of 230.4 billion yen compared with a year-ago profit of 212 billion yen, but was not as bad as the 270 billion yen loss analysts had predicted. The maker of the Altima sedan and Murano SUV made a net loss of 276.9 billion yen in its fourth quarter, swinging from a year-earlier profit of 138 billion yen.
For the year to next March, Nissan sees an operating loss of 100 billion yen, less than a consensus forecast for a 239 billion yen loss. It expects a full-year net loss of 170 billion yen. Nissan suffers from not having any brand big-hitters to match its other competitors. Lagging its bigger domestic rivals in hybrid technology, Nissan aims to beef up its LCV business.