Shares of struggling Japanese carmaker Nissan dropped by nearly eight per cent Friday after the firm said it expected to suffer an operating loss of 275 billion yen ($1.8 billion) in its fiscal year ending in March.
Nissan shares dropped by 7.95 per cent, before recovering to around five per cent in early trade.
The auto firm announced the forecast Thursday, adding that it expected an operating loss of 30 billion yen in the first six months of the fiscal year, which runs through September.
Nissan reported a net loss of 671 billion yen for the financial year to March 2025, and announced plans to cut 20,000 jobs, around 15 per cent of its workforce.
The 30 billion yen operating loss was better than the automaker had been forecasting. Nissan attributed it to one-time benefits, including lower costs related to emission regulations.
It said some project costs had also been postponed to the second half of the year.
鈥榃hile our first-half results reflect temporary benefits and payback from cost-saving initiatives, we anticipate ongoing challenging competitive environment in the second half, supply chain risks and the seasonality of business,鈥� said chief financial officer Jeremie Papin.聽