NISSAN Motor Co. shares fell after the Japanese automaker posted an annual net loss of ¥670.9 billion ($4.5 billion) and decided against issuing an operating profit forecast for the current fiscal year.
The stock dropped as much as 3.2% in Tokyo on Wednesday, underperforming the broader Topix index. Its pledge to close seven factories and slash 20,000 jobs to cut costs by ¥500 billion failed to allay concerns about the uncertainties over tariff impact.
“We give Nissan high marks for releasing additional restructuring measures early,” Morgan Stanley MUFG Securities Co. analysts including Hiroto Segawa wrote in a note. “However, the business environment remains highly opaque.”
The ailing Japanese automaker has struggled to turn around its business as its aging lineup failed to win over consumers in the US and China. US tariffs also threaten to derail its restructuring efforts, with Nissan expecting to see a ¥450 billion impact from policies. Its shares have tumbled more than 25% this year, compared with a 7% decline in the Topix index’s subgauge of auto companies. –BLOOMBERG
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