By Kosaku Narioka

Nissan Motor expects roughly $5 billion in net loss for the fiscal year ended March due to impairments and restructuring expenses, adding to falling sales.

The Japanese automaker is in the midst of turnaround efforts partly aimed at addressing weak sales, especially in China.

In November, Nissan revealed a restructuring plan that included cutting 9,000 jobs and reducing its global production capacity by a fifth.

"Despite these challenges, we have significant financial resources, a strong product pipeline and the determination to turnaround Nissan in the coming period," Chief Executive Ivan Espinosa said.

The company said Thursday that it estimated a net loss of between 700 billion yen, equivalent to $4.88 billion, and 750 billion yen for the fiscal year ended March, compared with its previous estimate of an 80 billion yen net loss.

The carmaker said a review of production assets in North America, Latin America, Europe and Japan led to impairments exceeding 500 billion yen. Restructuring costs are expected to surpass 60 billion yen, the company said. It decided not to pay any dividends for the year ended March.

Nissan said its cash position remained solid, estimating net cash of about 1.5 trillion yen at its auto business as of the end of March.

The carmaker said earlier Thursday that global sales dropped 4.3% to about 3.3 million units for the year ended March, dragged by falls in China, Japan and Europe.

Espinosa replaced Makoto Uchida as the company's chief earlier this month, just weeks after Nissan scrapped a proposed merger with rival Honda Motor.

Espinosa said in March the company was reinforcing its lineup in the U.S. and had high hopes for a new electric sedan in China, jointly developed with partner Dongfeng Motor.

Nissan is scheduled to announce its results for the fiscal year ended March on May 13.

Write to Kosaku Narioka at kosaku.narioka@wsj.com

(END) Dow Jones Newswires

April 24, 2025 07:34 ET (11:34 GMT)

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