Nissan Reports Second-Worst Results in History

Economy

Tokyo, May 28 (Jiji Press)--Nissan Motor Co. <7201> on Thursday reported a group net loss of 671,216 million yen for the year ended in March, the second-worst results in its history, due to restructuring costs as well as weak vehicle demand amid the coronavirus pandemic.

The Japanese automaker booked 603 billion yen in structural reform and fixed-asset impairment charges as it reduced its production capacity that ballooned under former Chairman Carlos Ghosn's expansionary policy.

The largest annual net loss in Nissan's history was 684.3 billion yen recorded in the year ended in March 2000, when it announced plans to close five plants in Japan.

For the year ended last March, the company posted an annual net loss for the first time in 11 years after reporting a profit of 319,138 million yen in the previous year.

Aiming to turn around its fortune, the automaker will implement additional restructuring measures, including closures of two factories abroad and a 20 pct reduction in global vehicle production capacity.

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Jiji Press