Nissan Braces for Pain as Weak Profit Forces Restructuring
- Automaker says report of 90% drop in profit ‘broadly accurate’
- Restructuring seen amid reports of twice as many job cuts
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Nissan Motor Co. confirmed reports of a 90% drop in quarterly operating profit and a broader restructuring before reporting results Thursday, underscoring the Japanese automaker’s struggle to get back on stable footing.
Operating profit for the fiscal first quarter will be several billion yen, the Nikkei newspaper reported a day earlier, indicating a figure well below analysts’ average prediction for a 66% drop to 37 billion yen ($342 million) in the April-to-June period. In the first three months of the year, profit plummeted 98%. Nissan hasn’t delivered such weak back-to-back earnings since the depths of the 2008-2009 financial crisis.