On a management pro forma basis, which includes the proportionate consolidation of results from Nissan’s joint venture Dong Feng operation in China, operating profit was ¥116.7 billion, which equates to a +1.0% operating margin, and net loss was -¥671.2 billion.
Nissan Motor Co. today posted large financial losses for the 12-month period ending March 31, 2020, aka Japanese fiscal year. The global COVID-19 pandemic substantially affected Nissan’s production, sales, and other business activities in all regions. Overall market demand decreased amid the current global environment, which has resulted in a slowdown in global total industry volume (TIV). In fiscal year 2019, the global TIV fell by 6.9% to 85.73 million units. Nissan’s sales dropped 10.6% to 4.93 million vehicles; market share maintained 5.8% as previously forecast. However, Nissan’s business and brand problems go back several years. Nissan today announced the closure of three factories in Barcelona, with the loss of 3,000 jobs and a further 20,000 jobs in the supply chain. (Renault, Nissan Motor, Mitsubishi Slice, Dice World by Brand)
During fiscal year 2019, consolidated net revenue declined to ¥9.8789 trillion yen, resulting in an operating loss of ¥40.5 billion yen and a net loss1 of -¥ 671.2 billion. This includes costs associated with restructuring and impairments of ¥603.0 billion as Nissan tried to improve operational and efficiency improvements. Free cash flow for the automotive business was, gulp, negative -¥641.0 billion.