Nissan shares tumble 10% to 4-month low after results

FILE PHOTO: The logo of Nissan Motor Corp. is displayed the company’s showroom in Tokyo, Japan November 11, 2020. REUTERS/Issei Kato

TOKYO (Reuters) – Shares in Nissan Motor Co slumped as much as 10.3% on Wednesday morning to their lowest in four months after the Japanese automaker’s weaker-than-expected guidance for the current fiscal year.

Nissan defied expectations on Tuesday for a return to profitability in the year ending March 2022, as the global chip shortage and raw material price increases curb its recovery from a record annual operating loss.

The forecast by Japan’s No.3 car maker by sales to break even for the year that began April 1 was lower than a 241.7 billion yen ($2.23 billion) profit predicted by SmartEstimate.

The company said its annual operating loss in the year ended March 31 widened to 150.65 billion yen from a 40 billion yen shortfall in the previous year, though it beat its February forecast.

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