Nissan warns on profits for a second time

Shares in Nissan have lost 4% after the Japanese car maker cut its profit guidance for the second time this year.

The company first cut its full-year guidance in February, but on Wednesday reduced that further. It now expects net income for the year to March to come in at ¥319bn, well below the ¥410bn predicted in February and the lowest since 2010.

Net revenues were also adjusted downwards slightly, from ¥11.6trn to ¥11.574trn.

The company blamed the revisions on a weaker performance across US markets and the fallout from the arrest of former head Carlos Ghosn.

It said: “The revision takes into account additional expenses arising from the implementation of a warranty extension campaign covering certain vehicles sold in the US market, the adverse operating environment facing the company during the fourth-quarter, and the impact of recent corporate issues on sales.”

Ghosn, for decades the driving force behind Nissan, was arrested in November on charges of financial misconduct and is expected to face trial later this year. He denies all the charges before him.

The former chief executive was instrumental in putting together the thee-way tie up between Nissan, fellow Japanese firm Mitsubishi and France’s Renault, and analysts have speculated over whether the alliance will survive without him.

Nissan’s new chief executive Hiroto Saikawa has pledged to improve corporate governance and bolster profit margins at the company, which will publish full-year results on 14 May.