Nissan Hits Four-Month Rock-Bottom Over Weak 2020 Fiscal Guidance
Nissan stock fell to its lowest level in four months on Wednesday, following the release of a disappointing guidance for the 2020 fiscal year.
The automaker missed expectations for a return to profitability in the year ending March 2022 due to the current global chip shortage, combined with increasing raw material prices slowing its recovery from a record annual operating loss.
“The fiscal year 2020 was a year dominated by the COVID-19 pandemic and impacted by multiple factors including the growth of environmental awareness and political as well as economic changes. If we look at the immediate challenges today, there is a big impact from business risks like semiconductor and commodity price hikes... so at this point in time, we are foreseeing operating profit coming out even”, Nissan Chief Executive - Makoto Uchida commented.
The company said its annual operating loss in the year ended March 31 reached an overwhelming JPY150.65 billion ($1.39 billion) from the previous year’s JPY40 billion-yen shortfall.
As a result, Nissan’s shares slumped 11.75% to JPY510.60 ($4.7) by 4:47 AM GMT, after falling over 12% earlier in the session.
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