Nissan Motor Co., Ltd. today filed a notice with the Tokyo Stock Exchange to report that the company’s consolidated earnings for the fiscal year ended March 31, 2020, may differ by more than 30% from the previous financial forecast announced on February 13, 2020, due to a continued decline in the company’s performance resulting from the impact of the COVID-19 pandemic and the possible booking of a one-time loss.
On February 13, Nissan revised its consolidated financial forecast for the fiscal year ending March 31, 2020, estimating an operating profit of 85 billion yen and net income* of 65 billion yen. However, the company’s performance has continued to decline, primarily impacted by the COVID-19 pandemic. As a result, Nissan may report a consolidated operating profit that is 120 billion to 130 billion yen lower and net income that is 150 billion yen to 160 billion yen lower than the February 13 forecast.
The deterioration in operating profit includes impacts from the decline in sales of vehicles and parts of approximately 90 billion yen and the booking of additional provisions for the sales finance business of approximately 30 billion yen. Furthermore, the deterioration in net income attributable to owners of the parent includes an approximately 30 billion yen impact from companies accounted for under equity method.
This does not include the impact of a revision of the company’s midterm plan, which the company is currently assessing. There is a possibility that Nissan may book an additional provision associated with this revision.
Nissan anticipates additional time to finalize the results and is currently reviewing the precise financial impact. Due to delays in the company’s financial close and audit process caused by the COVID-19 pandemic and lockdowns in several locations, Nissan will delay its announcement on FY19 financial results and revised midterm plan from middle of May to May 28, 2020. The company will report any amendments to the new announcement date if circumstances change.
*net income is in reference to what is attributable to owners of the parent