Nissan Motor Co., Ltd. today announced a significant revision to its financial outlook for the full fiscal year ending March 31, 2025.
Compared with the outlook issued at the time of Nissan’s third quarter results in February, the forecast full-year sales volume has been lowered to 3.35 million units. Full-year net revenue is now expected to reach 12.6 trillion yen, with operating profit of 85 billion yen. This is primarily due to changes in the competitive environment and deterioration in sales performance.
As part of the revised outlook, Nissan expects to report a net loss of 700-750 billion yen for fiscal year 2024. The revision is due to costs related to its ongoing turnaround plan, and other factors.
The management team has conducted a thorough review of production assets, leading to impairments exceeding 500 billion yen across North America, Latin America, Europe, and Japan. Additionally, restructuring costs are expected to exceed 60 billion yen as part of ongoing turnaround measures.
Despite the anticipated net loss, Nissan remains in a solid cash position, expecting to end fiscal year 2024 with net cash of 1.498 trillion yen. The company has 2.2 trillion yen in cash and cash equivalents, along with 1.2 trillion yen in loans to sales finance companies, totaling 3.4 trillion yen in available liquidity.
Nissan is disciplined in its approach to debt management and expects to end fiscal 2024 with 1.9 trillion yen in automotive debt, stable compared to the previous year.
The company has filed the following revised fiscal year forecast to the Tokyo Stock Exchange. Calculated under the equity accounting method for Nissan’s joint venture in China, the forecast for the fiscal year ending March 31, 2025, are:
TSE report basis – China JV equity basis
| Yen in billions | Previous FY24 outlook | Revised FY24 outlook | Variance vs previous outlook |
| Net revenue | 12,500 | 12,600 | +100 |
| Operating profit | 120.0 | 85.0 | -35.0 |
| Net income*1 | -80.0 | -700 to -750 | -620 to -670 |
*1：Net income attributable to owners of the parent company.
Chief Executive Ivan Espinosa said: “We are taking the prudent step to revise our full-year outlook, reflecting a thorough review of our performance and the carrying value of production assets. We now anticipate a significant net loss for the year, due primarily to a major asset impairment and restructuring costs as we continue to stabilize the company. Despite these challenges, we have significant financial resources, a strong product pipeline and the determination to turnaround Nissan in the coming period.”
Nissan will publish full-year results for fiscal 2024 on May 13.
SOURCE: Nissan
