Nissan is forecasting a wider-than-projected operating loss for the current fiscal year, as the Japanese automaker seeks to dig itself out of the hole by shutting assembly lines, cutting jobs and conserving cash.
The operating loss for the year ending March will be 470 billion yen (Dh16.5bn/$4.5bn), compared with analysts’ average prediction for a 216 billion-yen loss and a 40.5 billion-yen loss in the prior year. The Yokohama-based company also plans to skip its dividend, it said in a statement Tuesday. The shares declined as much as 7.3 per cent in early trading Wednesday.
The Japanese carmaker is struggling to restore profitability and sales after reporting its biggest loss in two decades. Nissan has been mired in turmoil since the 2018 arrest of former chairman Carlos Ghosn, who had pushed for volume growth.
The company is seeking to revive an aging lineup and cut costs in an effort to improve margins and bring more cash into operations. Even so, Nissan’s two biggest rivals in Japan, Toyota and Honda, are seen remaining profitable this year.
“The risks to the downside are greater than the risks to the upside,” said Takeshi Miyao, an analyst at Carnorama in Tokyo. “The are seeking to paint a picture of a V-shaped recovery, but they won’t be able to make up for the impact of the coronavirus, no matter how hard management tries.”
Nissan reported a 154bn-yen operating loss for the April-June quarter, compared with analysts’ prediction for a loss of 253bn yen, as the automaker stepped up cost cuts to make it through a pandemic-induced drop in sales. Revenue fell 51 per cent to 1.17 trillion yen in the April-June quarter, when most major economies went into lockdown to slow the spread of the Covid-19 virus.
The halt in dividend payouts is a blow to Renault, the Japanese carmaker’s biggest shareholder with a 43 per cent stake and its partner in a global automaking alliance. Nissan’s performance during the latest quarter will reduce Renault’s net income by €1.2bn (Dh5.2bn), the automaker said in a statement. Renault is set to announce results on Wednesday.
Nissan will shut three production lines and cut about 14,000 jobs globally, up from 12,500 announced a year ago, a person with knowledge of the matter has said. It also will close two rented offices near Nissan’s headquarters in Yokohama due to the pandemic, said the person, who asked not to be identified because the information isn’t public.
Nissan expects to sell 4.13 million vehicles during the current fiscal year, 16 per cent less than the 4.93 million units in the prior period.
“It would be meaningless if the cuts are only effective in the short term,” said Bloomberg Intelligence analyst Tatsuo Yoshida. “I’m interested in how sustainable and meaningful the cost cuts are.”
Mitsubishi Motors, which partners with Nissan and Renault, predicted a bigger-than-estimated full-year loss Monday, and announced plans to end production of its Pajero 4x4 by shutting down a plant in Gifu prefecture.
“It’s going to be a very challenging year,” Makoto Uchida, Nissan’s chief executive, said at a news conference.
The specs: 2018 Jaguar F-Type Convertible
Price, base / as tested: Dh283,080 / Dh318,465
Engine: 2.0-litre inline four-cylinder
Transmission: Eight-speed automatic
Power: 295hp @ 5,500rpm
Torque: 400Nm @ 1,500rpm
Fuel economy, combined: 7.2L / 100km
Heather, the Totality
Matthew Weiner,
Canongate
THE SPECS
Aston Martin Rapide AMR
Engine: 6.0-litre V12
Transmission: Touchtronic III eight-speed automatic
Power: 595bhp
Torque: 630Nm
Price: Dh999,563
ASHES FIXTURES
1st Test: Brisbane, Nov 23-27
2nd Test: Adelaide, Dec 2-6
3rd Test: Perth, Dec 14-18
4th Test: Melbourne, Dec 26-30
5th Test: Sydney, Jan 4-8
The specs
Engine: 3.8-litre, twin-turbo V8
Transmission: seven-speed automatic
Power: 592bhp
Torque: 620Nm
Price: Dh980,000
On sale: now
Dhadak 2
Director: Shazia Iqbal
Starring: Siddhant Chaturvedi, Triptii Dimri
Rating: 1/5
Labour dispute
The insured employee may still file an ILOE claim even if a labour dispute is ongoing post termination, but the insurer may suspend or reject payment, until the courts resolve the dispute, especially if the reason for termination is contested. The outcome of the labour court proceedings can directly affect eligibility.
- Abdullah Ishnaneh, Partner, BSA Law
Brief scoreline:
Liverpool 5
Keita 1', Mane 23', 66', Salah 45' 1, 83'
Huddersfield 0
COMPANY%20PROFILE
%3Cp%3E%3Cstrong%3ECompany%20name%3A%3C%2Fstrong%3E%203S%20Money%3Cbr%3E%3Cstrong%3EStarted%3A%3C%2Fstrong%3E%202018%3Cbr%3E%3Cstrong%3EBased%3A%3C%2Fstrong%3E%20London%3Cbr%3E%3Cstrong%3EFounders%3A%3C%2Fstrong%3E%20Ivan%20Zhiznevsky%2C%20Eugene%20Dugaev%20and%20Andrei%20Dikouchine%3Cbr%3E%3Cstrong%3ESector%3A%3C%2Fstrong%3E%20FinTech%3Cbr%3E%3Cstrong%3EInvestment%20stage%3A%3C%2Fstrong%3E%20%245.6%20million%20raised%20in%20total%3C%2Fp%3E%0A
German intelligence warnings
- 2002: "Hezbollah supporters feared becoming a target of security services because of the effects of [9/11] ... discussions on Hezbollah policy moved from mosques into smaller circles in private homes." Supporters in Germany: 800
- 2013: "Financial and logistical support from Germany for Hezbollah in Lebanon supports the armed struggle against Israel ... Hezbollah supporters in Germany hold back from actions that would gain publicity." Supporters in Germany: 950
- 2023: "It must be reckoned with that Hezbollah will continue to plan terrorist actions outside the Middle East against Israel or Israeli interests." Supporters in Germany: 1,250
Source: Federal Office for the Protection of the Constitution
Hydrogen: Market potential
Hydrogen has an estimated $11 trillion market potential, according to Bank of America Securities and is expected to generate $2.5tn in direct revenues and $11tn of indirect infrastructure by 2050 as its production increases six-fold.
"We believe we are reaching the point of harnessing the element that comprises 90 per cent of the universe, effectively and economically,” the bank said in a recent report.
Falling costs of renewable energy and electrolysers used in green hydrogen production is one of the main catalysts for the increasingly bullish sentiment over the element.
The cost of electrolysers used in green hydrogen production has halved over the last five years and will fall to 60 to 90 per cent by the end of the decade, acceding to Haim Israel, equity strategist at Merrill Lynch. A global focus on decarbonisation and sustainability is also a big driver in its development.
Porsche Taycan Turbo specs
Engine: Two permanent-magnet synchronous AC motors
Transmission: two-speed
Power: 671hp
Torque: 1050Nm
Range: 450km
Price: Dh601,800
On sale: now
UAE squad
Esha Oza (captain), Al Maseera Jahangir, Emily Thomas, Heena Hotchandani, Indhuja Nandakumar, Katie Thompson, Lavanya Keny, Mehak Thakur, Michelle Botha, Rinitha Rajith, Samaira Dharnidharka, Siya Gokhale, Sashikala Silva, Suraksha Kotte, Theertha Satish (wicketkeeper) Udeni Kuruppuarachchige, Vaishnave Mahesh.
UAE tour of Zimbabwe
All matches in Bulawayo
Friday, Sept 26 – First ODI
Sunday, Sept 28 – Second ODI
Tuesday, Sept 30 – Third ODI
Thursday, Oct 2 – Fourth ODI
Sunday, Oct 5 – First T20I
Monday, Oct 6 – Second T20I
Tips to stay safe during hot weather
- Stay hydrated: Drink plenty of fluids, especially water. Avoid alcohol and caffeine, which can increase dehydration.
- Seek cool environments: Use air conditioning, fans, or visit community spaces with climate control.
- Limit outdoor activities: Avoid strenuous activity during peak heat. If outside, seek shade and wear a wide-brimmed hat.
- Dress appropriately: Wear lightweight, loose and light-coloured clothing to facilitate heat loss.
- Check on vulnerable people: Regularly check in on elderly neighbours, young children and those with health conditions.
- Home adaptations: Use blinds or curtains to block sunlight, avoid using ovens or stoves, and ventilate living spaces during cooler hours.
- Recognise heat illness: Learn the signs of heat exhaustion and heat stroke (dizziness, confusion, rapid pulse, nausea), and seek medical attention if symptoms occur.
