TOKYO: Nissan Motor Co. on Tuesday said it expected to post its first annual operating loss in 11 years as the Japanese automaker struggles to recover from plunging vehicle sales as the coronavirus pandemic has sapped demand for cars.
In a statement, Japan’s No. 2 automaker said that it expected an annual operating loss of as much as ¥45 billion ($419.7 million), down from a previous forecast announced in February for an operating profit of ¥85 billion.
It expects to post a net loss of as much as ¥95 billion, compared with a previous forecast for ¥65 billion profit.
Nissan is bracing for its worst financial performance since the 2008 global financial crisis, when it posted an operating loss of ¥137.9 billion.
“The company’s performance has continued to decline, primarily impacted by the COVID-19 pandemic,” Nissan said in the statement, adding that it would delay announcing its annual financial results and restructuring plan to May 28. It had been scheduled for mid-May.
“Nissan anticipates additional time to finalize the results and is currently reviewing the precise financial impact,” the statement said.
Global automakers are bracing for a tumble in global vehicle sales, but even before the outbreak, Nissan’s sales and profits had been slumping and it was burning through cash, forcing it to row back on an aggressive expansion plan pursued by ousted leader Carlos Ghosn.
The pandemic has piled on pressure to renew efforts to downsize, and the company’s management has become convinced that the company needs to be much smaller, arguing for a recovery plan that will likely cut 1 million cars from its annual sales target, Reuters reported earlier this month.
On Tuesday, the automaker announced that global car sales plunged 43 percent in March from a year ago, resulting in annual sales of 4.8 million units in the year that ended in March, its worst sales performance since 2011.
Falling sales have prompted the company to slash the number of cars it will produce in Japan in May by 78 percent from last year, Reuters reported on Monday.
Nissan slashes full-year results forecast, sees operating loss
https://arab.news/w937e
Nissan slashes full-year results forecast, sees operating loss
- Nissan expects to post a net loss of as much as ¥95 billion
- Falling sales have prompted the company to slash the number of cars it will produce in Japan in May
Saudi investment pipeline active as reforms advance, says Pakistan minister
ALULA: Pakistan’s Finance Minister Mohammed Aurangzeb described Saudi Arabia as a “longstanding partner” and emphasized the importance of sustainable, mutually beneficial cooperation, particularly in key economic sectors.
Speaking to Arab News on the sidelines of the AlUla Conference for Emerging Market Economies, Aurangzeb said the relationship between Pakistan and Saudi Arabia remains resilient despite global geopolitical tensions.
“The Kingdom has been a longstanding partner of Pakistan for the longest time, and we are very grateful for how we have been supported through thick and thin, through rough patches and, even now that we have achieved macroeconomic stability, I think we are now well positioned for growth.”
Aurangzeb said the partnership has facilitated investment across several sectors, including minerals and mining, information technology, agriculture, and tourism. He cited an active pipeline of Saudi investments, including Wafi’s entry into Pakistan’s downstream oil and gas sector.
“The Kingdom has been very public about their appetite for the country, and the sectors are minerals and mining, IT, agriculture, tourism; and there are already investments which have come in. For example, Wafi came in (in terms of downstream oil and gas stations). There’s a very active pipeline.”
He said private sector activity is driving growth in these areas, while government-to-government cooperation is focused mainly on infrastructure development.
Acknowledging longstanding investor concerns related to bureaucracy and delays, Aurangzeb said Pakistan has made progress over the past two years through structural reforms and fiscal discipline, alongside efforts to improve the business environment.
“The last two years we have worked very hard in terms of structural reforms, in terms of what I call getting the basic hygiene right, in terms of the fiscal situation, the current economic situation (…) in terms of all those areas of getting the basic hygiene in a good place.”
Aurangzeb highlighted mining and refining as key areas of engagement, including discussions around the Reko Diq project, while stressing that talks with Saudi investors extend beyond individual ventures.
“From my perspective, it’s not just about one mine, the discussions will continue with the Saudi investors on a number of these areas.”
He also pointed to growing cooperation in the IT sector, particularly in artificial intelligence, noting that several Pakistani tech firms are already in discussions with Saudi counterparts or have established offices in the Kingdom.
Referring to recent talks with Saudi Minister of Economy and Planning Faisal Alibrahim, Aurangzeb said Pakistan’s large freelance workforce presents opportunities for deeper collaboration, provided skills development keeps pace with demand.
“I was just with (Saudi) minister of economy and planning, and he was specifically referring to the Pakistani tech talent, and he is absolutely right. We have the third-largest freelancer population in the world, and what we need to do is to ensure that we upscale, rescale, upgrade them.”
Aurangzeb also cited opportunities to benefit from Saudi Arabia’s experience in the energy sector and noted continued cooperation in defense production.
Looking ahead, he said Pakistan aims to recalibrate its relationship with Saudi Arabia toward trade and investment rather than reliance on aid.
“Our prime minister has been very clear that we want to move this entire discussion as we go forward from aid and support to trade and investment.”
