By Kosaku Narioka
Nissan Motor posted its fifth straight quarterly net loss as U.S. tariffs proved a major speed bump for the company, which is seeking to turn its business around.
The Japanese automaker, one of Japan's best-known brands, has taken a series of restructuring steps over the past year, including most recently selling its headquarters for more than $600 million.
The company on Thursday recorded a wider net loss of 106.2 billion yen, equivalent to $689.1 million, for the three months ended September as U.S. levies dragged down operating profit by more than half a billion dollars.
Nissan said that in its second half, it expects sales volume to rebound, thanks to the introduction of new models, and the auto business to generate positive free cash flow. The carmaker said it is on track to achieve a cost-savings target of Y500 billion by the end of March 2027.
"Our first-half results reflect the challenges we face, but they also confirm that Nissan is firmly on the path to recovery," Chief Executive Ivan Espinosa said. "We have made meaningful progress and while there is more to do, the foundation for future success is in place."
Nissan said earlier that it will book about Y73.9 billion in special gains this fiscal year from the sale of its headquarters in Yokohama, just south of Tokyo. The automaker, which will continue to use the building as its global base under a lease agreement, said the proceeds will go toward restructuring efforts and investments for growth.
Last week, Nissan projected annual revenue to drop 7.4% to Y11.700 trillion, estimating an operating loss of Y275.00 billion. The company reiterated Thursday that it remains difficult to predict net results due to continuing restructuring measures.
Nissan estimates a tariff hit of Y275 billion for the full year. It also anticipates foreign-exchange volatility and supply-chain risks, including a potential shortage of chips from Nexperia amid a dispute between the Dutch and Chinese governments over control of the semiconductor maker.
The U.S. in April imposed a 25% tariff on top of the existing 2.5% levy on finished foreign-made cars, a move aimed at narrowing the trade deficit and bringing manufacturing back home. Japanese autos are now subject to a 15% tariff--lower than previously but still a significant burden--following a trade deal struck with Tokyo in July.
Nissan has said it would slash 20,000 jobs over the four years through March 2028 to address weak sales and return the company to profitability. It also plans to reduce global production capacity--excluding China--to 2.5 million vehicles from 3.5 million and manufacturing sites to 10 from 17.
Concerns about slumping sales and the impact of U.S. tariffs on its operations have driven the stock down by about 30% this year.
Nissan's second-quarter revenue dropped 3.8% to Y2.872 trillion as sales declined in all major regions except North America. The automaker maintained expectations for global sales to fall 2.9% to 3.25 million units for the year ending March. Sales in China are projected to be higher than previously expected, while those in Europe and Japan are forecast to be lower, it said.
Write to Kosaku Narioka at kosaku.narioka@wsj.com
(END) Dow Jones Newswires
November 06, 2025 07:40 ET (12:40 GMT)
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