Nissan slashes profit forecast after sales slump

Nissan slashes profit forecast after sales slump

Nissan has cut its profit outlook for the year following a sharp fall in sales.

Julian Satterthwaite reports.

Makoto Uchida is Nissan's third chief executive since September.

And he's got a big job on his hands: (SOUNDBITE) (Japanese) NISSAN MOTOR'S CEO, UCHIDA MAKOTO, SAYING: "Unfortunately, the recent decline in sales and the downturn of business performance that followed was worse than we were expecting." The Japanese automaker on Thursday (February 13) posted its first quarterly loss in a decade, and slashed its annual profit forecast by 43%.

It now expects operating income of just 775 million dollars, way below analyst forecasts.

Nissan has been hit by a worldwide slump in sales.

They were down 11% in the October-December period.

In the U.S. the drop was more like a fifth, while in China shipments look set to hit a seven-year low.

Then, of course, there's the turmoil that followed the ousting of former boss Carlos Ghosn.

He fled Japan while awaiting trial on charges of financial misconduct, all of which he denies.

Now Nissan plans to step up restructuring: SOUNDBITE) (Japanese) NISSAN MOTOR'S CEO, UCHIDA MAKOTO, SAYING: "We are now working on additional measures for short-term recovery.

This includes moving up plans and further utilizing alliances and partnerships." Reuters sources say at least 4,300 white-collar jobs and two plants will go as part of cost savings.

Nissan will also reportedly cut the number of models, trims and options on offer, and reduce marketing expenditure.

The company says its full-year dividend will be barely a sixth of last-year's payout.