Nissan Motor Co. is forecasting a wider-than-projected operating loss for the current fiscal year, as the impact from the coronavirus pandemic forces the automaker to accelerate cost-cutting measures.
The operating loss for the year to March will be ¥470 billion ($4.5 billion), compared with analysts’ average prediction for a ¥216 billion loss and a ¥40.5 billion loss in the prior year. The Yokohama-based company also plans to skip its dividend, it said in a statement Tuesday.
The 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.