Nissan sees $4.5 billion annual operating loss as pandemic hinders turnaround efforts

FILE PHOTO: The brand logo of Nissan Motor Corp. is seen at the front nose section of the company’s new Ariya all-battery SUV during a press preview, ahead of the world premiere, at Nissan Pavilion in Yokohama, south of Tokyo, Japan July 14, 2020. REUTERS/Issei Kato/File Photo

TOKYO (Reuters) – Nissan Motor Co (7201.T) said on Tuesday it expects to make an annual operating loss for a second straight year, as the coronavirus pandemic hampers its efforts to emerge from a deep slump in sales.

It forecast an operating loss of 470 billion yen ($4.5 billion), its biggest according to Nissan data that goes back to 1977 and much larger than a consensus estimate of a 262.8 billion yen loss drawn from 20 analysts polled by Refinitiv.

Years of aggressive expansion, particularly in emerging markets, has left Japan’s No. 2 automaker with dismal margins, an ageing portfolio and a tarnished brand.

Still reeling from the 2018 arrest and ouster of former CEO Carlos Ghosn, Nissan unveiled a far-reaching restructuring plan in May that calls for a dramatic reduction in production lines and its vehicle model range.

Reporting by Naomi Tajitsu; Editing by Edwina Gibbs

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