Nissan shares fall by more than 10 per cent
Profits warning and loss of shareholder dividend sends the carmaker's shares to a decade low
Shares in Nissan have fallen to their lowest in more than a decade after the company issued a profits warning yesterday.
The Japanese car marker saw 10 per cent knocked off its value once it announced there would be no dividend payable for the second half of the year.
That has had a big impact on Renault, its biggest shareholder, which has said it will also cut its dividend for 2019.
Nissan, Japan’s second biggest motor manufacturer after Toyota, is still reeling from a scandal surrounding former boss Carlos Ghosn.
The multi-millionaire former Nissan boss fled to Lebanon at the end of last year to avoid facing trial on financial misconduct charges. He remains an international fugitive. Nissan blamed the scandal for a drop in its net profit of more than 87 per cent for the nine months to December.
It’s not only the leadership crisis that has sent Nissan into a sudden decline. Worsening sales and a hit to its brand image as a mid-range marque following years of heavy discounting, in the big US market in particular, are all taking their toll.
As a result, Nissan yesterday, posted its first quarterly net loss in nearly a decade.
Shares of Nissan closed down 9.6 per cent to a 10.5 year low, the company's biggest one-day fall since 2013.
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