Nissan slashes profit forecasts after inspection scandal

This Nov. 10, 2017 photo shows a gallery of the Nissan Motor Co. at its global headquarters in Yokohama. (AP)
Updated 08 February 2018
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Nissan slashes profit forecasts after inspection scandal

TOKYO: Japanese car giant Nissan on Thursday slashed its forecast for full-year operating profit after admitting that a damaging inspection scandal last year had “adversely impacted” the firm’s performance.
Nissan said it now expects operating profit of 565 billion yen ($5.2 billion) for the fiscal year to March 2018, a drop of 12.4 percent from its previous estimate in November.
“During the period, the Group’s performance was adversely impacted by special items related to the final vehicle inspection issue in Japan, along with slowing sales growth, negative pricing trends and inventory adjustments in the US market,” it said in a statement.
Nissan was forced to recall some 1.2 million vehicles after admitting in October that staff without proper authorization had conducted final inspections on some vehicles intended for the domestic market before they were shipped to dealers.
The automaker suspended all domestic production for a few weeks, sending its passenger car sales plummeting more than 55 percent in Japan in October.
In a bid to atone for the scandal, chief executive officer Hiroto Saikawa said he was “voluntarily” returning his pay, along with other executives.
Vice president Joji Tagawa told reporters that it had been a “challenging” period for the carmaker but saw some light at the end of the tunnel.
“We remain focused on improving the state of our business performance and our financial results despite market headwinds ... we expect to normalize our operations by the end of the fiscal year,” he said.
“We take it very seriously so we are putting in place various measures to cope with the situation.”
Nissan’s operating profit for the nine months to December 2017 were 364.2 billion yen, a 27.6 percent decline from the same period last year.
Nissan sold a total of 4.1 million vehicles — a gain of 2.9 percent on-year — but again the inspection scandal took its toll.
There was a 3.4-percent dip in car sales in Japan because of the inspection issue, Nissan said.


Riyadh Future Investment Initiative summit on schedule for next week

Updated 15 October 2018
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Riyadh Future Investment Initiative summit on schedule for next week

  • Future Investment Initiative to go ahead despite ‘disappointing’ withdrawals.
  • It will be held in Riyadh from Oct. 23 to 25.

RIYADH: Officials and business leaders including US Treasury Secretary Steve Mnuchin, IMF Managing Director Christine Lagarde and JPMorgan Chase CEO Jamie Dimon are set to attend an investment summit in Saudi Arabia next week.
The Future Investment Initiative (FII) is going ahead despite the “disappointing” withdrawal of some speakers and partners.
It will be held in Riyadh from Oct. 23 to 25.
“Despite the disappointing withdrawal of some speakers and partners, we look forward to welcoming thousands of speakers, session managers and guests from around the world,” an FII spokesman said in a statement quoted by Asharq Al-Awsat.
An earlier statement gave an overview of the event, saying that “investing in transformation,” “technology as opportunity” and “advancing human potential” are among the FII’s broad themes.
Mohammed Khunaizi, a Shoura Council member, said that government and business leaders will map out a “collective vision for future” at the event.
“The FII conference has emerged as the largest investment event of its kind in the Middle East, which offers opportunities for billions of dollars in business deals besides being an educative forum,” he said.
JPMorgan chief Dimon has been quoted in media reports as saying: “I am looking forward to attending the Future Investment Initiative in Riyadh to discuss innovation in technology and what it means to all of us.”
Sami A. Al-Rajhi, a Saudi business executive, said: “The FII seeks to further explore how investment will drive growth opportunities regionally and globally.
“The event will help to bring many business opportunities to the country in particular and to the Middle East in general, which will support job creation, innovation and unlock economic opportunities.”