Nissan cuts profit forecast and books £65m charge on Carlos Ghosn compensation

 
James Warrington
Follow James
JAPAN-AUTOMOBILE-NISSAN-RENAULT-MITSUBISHI-GHOSN
Nissan said it has recognised ¥‎9.23bn in expenses that were not booked in previous years (Source: Getty)

Nissan slashed its full-year profit forecast amid falling sales today as it also took a hit related to compensation for its former chairman, Carlos Ghosn, who is awaiting trial on financial misconduct charges.


The Japanese car manufacturer revised its full-year profit forecast from ‎¥‎540bn down to ¥‎450bn (£3.2bn).

Read more: No, Nissan’s move is not proof that Brexit will be a disaster

The move comes despite a sharp rise in operating profits, which jumped more than 25 per cent to ¥‎103bn in the three months to the end of December.

But Nissan blamed the cut-back forecast on its performance in the first nine months of the year, which saw global sales fall 2.1 per cent.


The firm said growth in Japan and China was offset by a decline in Europe and the US. “This was equivalent to a global market share of 5.9 per cent, down 0.1 percentage point from a year earlier,” it said.

Nissan also recognised an additional ¥‎9.23bn in expenses that were not booked in previous years.

This sum reflects around £65m in additional remuneration for ousted chairman Ghosn, who has been charged with underreporting his salary.

Ghosn has been held in Japan since his shock arrest on 19 November following allegations of financial misconduct, which also included the transferring of personal losses to Nissan. Ghosn denies all charges.

Read more: Nissan to list £63.2m to ex-chairman Ghosn in quarterly statement

Nissan said it has not paid the additional salary to Ghosn, who is currently awaiting trial, and said the final sum may differ as the investigation is still ongoing.

Last week Nissan cancelled plans to manufacture its X-Trail model at its Sunderland plant, striking a fresh blow to the ailing UK car industry.

Shares in Nissan were up almost two per cent following the update.