Nissan Flags Narrower Annual Net Loss as Cost Cuts Make Progress

Nissan said it now expects a narrower fiscal-year net loss of ¥550 billion ($3.45bn) versus a prior ¥650 billion forecast, citing a reversal of a U.S. emissions provision, cost cuts and favorable FX from a weak yen. The company also trimmed its operating outlook to a ¥50 billion profit (versus a prior ¥60 billion loss projection) even as global vehicle sales fell 4.2% to about 3.2m units. The improvement reflects restructuring progress—asset sales, job cuts and model pruning—and one-off gains. For markets, the news is modestly positive for Japanese exporters and corporate earnings momentum, and could lend support to the Japan 225 (Japan equities) as weaker yen boosts overseas profit translation and competitiveness. Risks remain from declining sales and continued restructuring charges.