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Nissan takes Ghosn charge as profits go into reverse

Sky News logo Sky News 12/02/2019 James Sillars, business reporter

Carlos Ghosn wearing a suit and tie: Carlos Ghosn is shown at a car show just one month before his arrest in Japan © Provided by BSkyB SNI Limited Carlos Ghosn is shown at a car show just one month before his arrest in Japan Nissan says it has recognised 9.2bn yen (£64.7m) in costs related to scandal-hit Carlos Ghosn while downgrading its annual profit forecasts.

The Japanese carmaker, which sacked Ghosn as its chairman in November after uncovering alleged financial misconduct, said the charge covered compensation and expenses over several years.

a screen shot of Carlos Ghosn et al. taking a selfie: Carlos Ghosn was been in custody in Tokyo since 19 November © Getty Carlos Ghosn was been in custody in Tokyo since 19 November

He remains in a Tokyo prison cell awaiting trial and denies all the accusations he faces in the country.

Nissan made the announcement while revealing financial results covering the third quarter of its financial year to 31 December which showed a 77% drop in profits to 70bn yen (£740m).

a man in a red car: The Nissan car plant in Sunderland © Reuters The Nissan car plant in Sunderland

That was despite revenues rising by 6% in the period compared to the same quarter in 2017.

The company pointed to challenging conditions continuing globally but said falling sales in North America - where it had been discounting heavily - and in Europe were propped up by gains in Japan, China, Thailand, the Philippines and Latin America.

Nissan, like rivals, is facing challenges on several fronts from the slowdown in the world economy to the demonisation of diesel - particularly in Europe.

Sky News revealed last month how Nissan had decided to maintain production of its X-Trail model in Japan - despite a previous pledge to create over 700 more jobs in Britain through an expansion of its Sunderland operation.

The company later admitted that Brexit uncertainty had also clouded the investment.

Nissan's financial results showed profits were 45% down on a rolling nine month basis.

It said that as a result of its performance it was revising lower its forecasts for full-year revenues and profits.

The company predicted earnings of 410bn yen (£2.9bn) - a fall on 90bn yen on its earlier expectations.

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