Nissan shares tumble to ten-and-a-half year low after earnings rout
TOKYO: Shares of Nissan Motor Co fell to their lowest in 10-1/2 years on Friday, tumbling nearly 10per cent after the struggling Japanese automaker cut its annual profit forecast and said it would not pay a dividend in the second half.
Japan’s No.2 automaker has been badly shaken by the scandal surrounding former boss Carlos Ghosn. But that crisis has been compounded by worsening sales and a brand image tarnished by years of heavy discounting in the United States and other markets.
In a sign of the deepening woes, it also on Thursday posted its first quarterly net loss in nearly a decade.
“It is too early for a halt in downward trend in Nissan’s share price in this environment,” Jeffries analyst Takaki Nakanishi wrote in a note to clients following the results on Thursday.
Shares of Nissan finished down 9.6per cent at 513.7 yen in Tokyo trade on Friday, their lowest in 10-1/2 years and their biggest one-day fall since 2013.
The dividend cut will be particularly painful for top shareholder Renault SA . The French carmaker, in turn, on Friday said it would cut its dividend for 2019.
(Reporting by David Dolan; Editing by Shri Navaratnam)