Crisis Deepens as Nissan Issues Fresh Profit Warning Again

The woes of the Japanese car giant looks to have deepened by the newly issued profit warning by Nissan while it seeks to recover from Carlos Ghosn’s arrest 

The firm had second cut in its forecast within few months by downgrading its projection for net profit in the fiscal year to March 2019 from 410-billion yen ($3.7-billion) to 319-billion yen.

Nissan appeared to acknowledge the recent difficulties surrounding the Ghosn affair, which has cast questions over the company’s own corporate governance.

Reasons for the downgrade are:

“the adverse operating environment facing the company during the fourth quarter, and the impact of recent corporate issues on sales.”

 “additional expenses arising from the implementation of a warranty extension campaign covering certain vehicles sold in the US market.”

The profit warning came as ex-chairman Ghosn awaits his fate after prosecutors hit him with a fourth set of charges over alleged financial misconduct.

 

In February, Nissan already slashed its full-year forecast, as it revealed that nine-month net profit had dropped 45 percent — a decline the firm blamed on rising raw material costs and foreign exchange difficulties.

It was forced to downgrade its net profit forecast for the fiscal year to March to 410 billion-yen, compared to 500-billion yen earlier.