TOKYO – Nissan Motor raised its full-year forecast for the year through March for the second time in three months Tuesday, predicting a net loss of 530 billion yen ($ 5.1 billion), as the Japanese retailer gradually recovers from COVID-19 slowdown -induced.
The Japanese automaker’s employment forecast was previously revised slightly in November from an expected loss of 670 billion yen to a loss of 615 billion yen reflecting stronger sales and cost-cutting measures.
Nissan on the same day announced a net loss of 367 billion yen for the period April to December. It has slowly kicked back as it tries to restructure.
Meanwhile, Honda Motor revised its full-year net profit to 465 billion yen on the same day, backed by cost-cutting efforts and showing a 2% increase from fiscal 2019.
The company previously revised its earnings forecast in November to 390 billion yen. Honda also reported a net profit of 444 billion yen for the first nine months of the fiscal year, down 8.5% from a year earlier.
Nissan suffered from slow car demand that fueled the pandemic beyond its peers such as Toyota Motor and Honda Motor. Nissan’s monthly global output exceeded the one-year level earlier in December alone, and the other two Japanese carmakers made a start in September, spurred by economic reversals in China and the USA.
Nissan in May launched a restructuring plan that aims to achieve a 5% operating profit by the end of fiscal 2023 by slowing additional annual production capacity and rationalizing its business.
The car company is moving away from the approach taken by former Chairman Carlos Ghosn, who emphasized Nissan’s market expansion by increasing productivity and offering retailers an incentive to allow discounts.