Nissan at ‘Rock Bottom’ Drops on Dividend Cut, Weak Profit
- Results make it easier for Renault to push for more control
- ‘Shock’ dividend cut could spur investors to sell stock
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Nissan Motor Co. shares fell to their lowest since 2012 after predicting annual operating profit below even the most pessimistic analyst’s estimate and cut its dividend for the first time in a decade, giving partner Renault SA a potential opening to push for greater control over their automaking alliance.
Hurt by slumping U.S. sales, aging vehicle models and an out-of-sync product cycle, the Japanese carmaker issued an outlook for profit of 230 billion yen ($2.1 billion) for the fiscal year ending March 2020, roughly half of the average projection for 453 billion yen. Nissan also reported its lowest annual profit in a decade at 318 billion yen.