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JAPAN-NISSAN-AUTOMOBILE-EARNINGS
Crisis-hit Nissan issues fresh profit warning
TOKYO, April 24, 2019 (BSS/AFP) – Nissan issued a profit warning on
Wednesday, deepening the woes of the Japanese car giant as it seeks to
recover from the shock of former boss Carlos Ghosn’s arrest.
The firm downgraded its projection for net profit in the fiscal year to
March 2019 from 410 billion yen ($3.7 billion) to 319 billion yen, the second
cut in its forecast in recent months.
Nissan appeared to acknowledge the recent difficulties surrounding the
Ghosn affair, which has cast questions over the company’s own corporate
governance.
It cited as a reason for the downgrade “the adverse operating environment
facing the company during the fourth quarter, and the impact of recent
corporate issues on sales.”
The profit warning came as ex-chairman Ghosn awaits his fate after
prosecutors hit him with a fourth set of charges over alleged financial
misconduct.
Authorities suspect he syphoned off around $5 million for his personal use
from money transferred from Nissan to a dealership in Oman.
Ghosn denies that charge and also insists he is innocent of all
allegations against him.
In February, Nissan already slashed its full-year forecast, as it revealed
that nine-month net profit had dropped 45 percent — a decline the firm
blamed on rising raw material costs and foreign exchange difficulties.
It was forced to downgrade its net profit forecast for the fiscal year to
March to 410 billion yen, compared to 500 billion yen earlier.
The results came as Nissan and its partners Renault and Mitsubishi Motors
are seeking to turn the page on Ghosn’s arrest for financial misconduct,
which has exposed a rift in the three-way tie-up.
BSS/AFP/HR/1235