Nissan cuts profit outlook over costs related to safety inspection scandal
Wednesday, November 08, 2017 4:55:01 AM ET
Nissan Motor Co. on Wednesday lowered
its full-year profit projection for the business year through next
March, owing to costs associated with a decades-long scandal
involving the automaker using uncertified staff to carry out final
safety checks on its cars.
The Yokohama-based automaker lowered its group operating profit
from an earlier estimate of 685 billion yen (6.01 billion U.S.
dollars) for the year to March 2018, to 645 billion yen (5.66
billion U.S. dollars), with its net profit outlook set at 535
Nissans profit outlook, based on an expected uptick of sales
netting 11.8 trillion yen, the equivalent of a 0.7 percent
increase compared to a year earlier, is down more than 19 percent
from the last business year.
For the fiscal first-half through September, meanwhile, the
embattled automaker said its operating profit tanked 17 percent
from a year earlier to 281.83 billion yen.
The hefty drop was owing in part to the automakers recall of
some 1.2 million vehicles after the inspection scandal came to
Losses were also incurred due to legal expenses connected to
Takata Corp. and its faulty air bag inflators, which have led to
some fatalities and affected a number of prominent global
automakers including Nissan.