Nissan's stock price drops more than 10% following disappointing quarterly results and production reduction plans.

• Nissan's shares plummeted by 10.12% following the company's announcement of reduced global production capacity and poor quarterly results.
• In the second quarter, the operating profit decreased by almost 85% compared to the previous year, amounting to 31.9 billion yen, while revenue also decreased by 5% to 2.99 trillion yen.
• Nissan abandoned its interim and year-end dividend projections, with top management accepting voluntary salary reductions.

The Japanese automaker's shares plummeted by 10.12% following the release of its downbeat quarterly results and announcement of a 20% reduction in global production capacity.

On Friday, the company's shares hit a four-year intraday low of 368.5 yen, their weakest since September 2020, after announcing plans to cut staff by 9,000.

Nissan reported a 9.3 billion yen net loss in the second quarter ended September, a reversal from the 190.7 billion yen net profit it recorded in the same quarter last year.

In the second quarter, the operating profit decreased by almost 85% compared to the previous year, amounting to 31.9 billion yen, while revenue also decreased by 5% to 2.99 trillion yen.

Nissan reduced its full-year revenue projection from 14 trillion yen to 12.7 trillion yen and its operating profit forecast from 500 billion yen to 150 billion yen.

The company board opted not to pay an interim dividend and abandoned the year-end dividend projection.

Nissan stated that the company was in a dire predicament and will implement immediate actions to improve its performance.

The company plans to reduce its workforce, cut costs, and prioritize investments in research and development.

The company aims to cut its fixed and variable costs by 400 billion yen in total in the 2024 financial year.

The company aims to become sustainably profitable and cash-generative by its 2026 fiscal year, despite anticipating annual sales of 3.5 million units.

The sales volume for the first half of the fiscal year was 1.6 million units, which represents a 1.6% decrease compared to the same period in the previous year.

Nissan announced that CEO Makoto Uchida will voluntarily surrender 50% of his monthly salary from November, and other executive committee members will also choose to take pay cuts.