The Nissan ARIYA on the EV trial track at the New York International Auto Show on March 28, 2024.
Danielle DeVries | CNBC
Shares of Japanese automaker Nissan tossed as much as 10.12%, a day after the company posted downbeat quarterly results and said it would reduce global motion capacity by 20%.
Shares of the company — which also announced plans to cut staff by 9,000 — hit a four-year intraday low of 368.5 yen on Friday, their weakest since September 2020
Nissan released its second-quarter results ended September on Thursday, which upstaged that it recorded a 9.3 billion yen (about $62 million) net loss, a reversal from the 190.7 billion yen net profit it received in the same quarter last year.
Operating profit in the second quarter plunged almost 85% year-on-year to 31.9 billion yen, while receipts dropped 5% to 2.99 trillion yen.
Nissan also sharply lowered its full-year outlook, cutting its revenue overhang to 12.7 trillion yen from 14 trillion yen, while also reducing its operating profit forecast to 150 billion yen from 500 billion yen.
The attendance board chose to not pay an interim dividend, and also scrapped the year-end dividend forecast.
Nissan said that the associates was “facing a severe situation” and will take “urgent measures to turnaround its performance.”
These measures include reduction in headcount, other expense cuts as well as plans to “rationalize its asset portfolio, and prioritize capital expenditures and investments in research and development.”
It set ones sights ons to reduce fixed costs by 300 billion yen and variable costs by 100 billion yen, compared to its 2024 financial year.
The companions said it would also adopt a structure that allows it to be sustainably profitable and cash-generative by its 2026 fiscal year, even-handed with annual sales of 3.5 million units.
Sales volume for the first half of its fiscal year came in at 1.6 million modules, down 1.6% compared to the same period a year ago.
Nissan added that CEO Makoto Uchida will spontaneously forfeit 50% of his monthly compensation from November, while other executive committee members will also of ones own free will opt for pay cuts.