Nissan makes a loss for the first time in a decade

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As the quarterly reporting season winds down, another car manufacturer - this time Nissan, Japan’s No. 3 automaker -  has reported a huge net loss of $2.3 billion, a loss for the first time in the last 10 years. Nissan says that the loss is due to the US financial crisis, the global slowdown and the strong yen – all cumulative factors for the loss.

However, Nissan is optimistic for the future. The company aims to return to a positive free cash flow position in the year ahead. Based on the company’s outlook and assuming foreign exchange rates of 95 yen/dollar and 125 yen/euro, Nissan filed the following forecast for the fiscal year ending March 31, 2010, with the Tokyo Stock Exchange:

• Net revenues of 6 trillion 950 billion yen (US $73.16 billion, euro 55.6 billion);
• Operating loss of 100 billion yen (US $1.05 billion, euro 800 million);
• Net loss of 170 billion yen (US $1.79 billion, euro 1.36 billion);
• R&D expenses of 400 billion yen (US $4.21 billion, euro 3.2 billion); and
• Capital expenditures of 350 billion yen (US $3.68 billion, euro 2.8 billion)

It will also start making hybrid cars in its Oppama plant in Japan, which can make 50,000 vehicles in a year. Earlier it was purchasing the hybrid system from Toyota and selling the hybrids in the US, but once it makes its own and goes in for mass marketing, it should reduce its costs.