(RTTNews) – Nissan Motor Co., Ltd. (NSANF. PK, NSANY. PK) reported that its first quarter net loss attributable to the owners of the parent company of 285.6 billion yen, compared to a net profit of 6.4 billion yen in the past year.
During the first quarter, global auto sales in the industry fell almost partly amid the COVID-19 pandemic, which had a significant effect on Nissan’s sales.
The company has suspended production at production sites around the world to restrict COVID-19. Since then, Nissan’s plants have resumed operations, but face lower capacity usage due to declining sales. The functionality of the company continues to be affected through the challenging business climate, the company said.
Nissan expects turnover to decline in fiscal 2020. It predicts that the overall volume of the global industry will be minimized by 16% until last year to succeed in 72.04 million vehicles.
Nissan has indicated that it will forgo the distribution of dividends for fiscal year 2020 due to demanding situations of profitability and loss of money flow.
For fiscal year 2020, the company expects a loss attributable to the owners of the parent company at 670 billion yen, an operating loss of 470 billion yen and a profit of 7.80 billion yen.
Operating loss for the first quarter 153.9 billion yen, compared to operating profit of 1.6 billion yen last year.
Quarterly net source of revenue 1.17 trillion yen, up from 2.37 trillion yen last year.