Thursday January 15, 03:00 AM
Nissan to suffer first loss under Ghosn: report
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TOKYO (AFP) - Japan's Nissan Motor Co (Berlin: NISA.BE - news) . expects to post an operating loss in the current financial year to March because of tumbling North American sales and a stronger yen, a newspaper reported Thursday.
Nissan is set to issue a profit warning to prepare investors for its first year in the red since Renault (Paris: FR0000131906 - news) sent Carlos Ghosn to rescue its Japanese partner from the brink of bankruptcy in 1999, the Yomiuri Shimbun said.
Japanese makers have seen a dramatic reversal in their fortunes in recent months as recessions in major markets batter demand for cars. Last month Toyota predicted its first ever annual operating loss.
Nissan, Japan's number three automaker, in October lowered its forecast for operating profit for the year to March 2009 to 270 billion yen (3.0 billion dollars) from a previous projection of 550 billion yen.
The Yomiuri said the company would log a loss of at least tens of billions of yen (hundreds of millions of dollars) as sales in the key North American market have fallen rapidly amid the economic downturn.
The strong yen is also expected to erode Nissan's profits by more than 70 billion yen, the daily said without naming its sources.
Nissan declined to confirm or deny the report.
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