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STORY: Nissan slashed its annual outlook Thursday after reporting a 99% plunge in first-quarter profits.That’s as deep discounting in the U.S. shredded the Japanese automaker’s margins. Nissan’s shares fell following the results, which were far short of analyst expectations.Operating profit for April-June was just $6.5 million.That was just a fraction of the roughly $1 billion profit predicted ahead of the results. It marks Nissan’s worst quarterly performance in more than three years.While global sales remained even year-on-year at 787,000 vehicles, the profit from those sales was hit by an increase in discounts and marketing costs. That’s as Nissan tried to ride out intense competition, particularly in the U.S. The automaker, which has struggled in the U.S., said sales there were also hurt by an aging portfolio and a market shift to hybrid vehicles. However, the firm's CEO told Reuters that Nissan plans to bolster sales with fresh models in the second half of the year. Despite this, investors will now likely worry about the car maker's outlook in the United States.That concern adds to Nissan’s woes in China, where it has seen tough competition from domestic rivals.Shares in the company tumbled around 11% at one point before finishing down 7% - their biggest one-day decline since February.