Nissan cuts full-year outlook, dividend on weaker car demand

Nissan logo is seen in Tokyo Motor Show in Tokyo, Japan October 24,2019. REUTERS/Soe Zeya Tun/Files

NISSAN Motor Co. cut its full-year profit outlook for the second time in as many quarters and scrapped its year-end dividend payout, renewing concern about the troubled automaker’s ability return cash to investors, especially top shareholder and partner Renault SA.

Dogged by falling sales in its biggest markets and instability in its most senior management ranks following the arrest of former Chairman Carlos Ghosn, Nissan reduced its full-year operating profit forecast to 85 billion yen ($774 million), down from an earlier estimate of 150 billion yen. Nissan had initially projected an operating profit of 230 billion yen for the fiscal year through March, but trimmed that last quarter. A year ago, it earned 318 billion yen - which at the time marked its lowest annual income in a decade.