Renault stocks disappointed by Nissan’s outlook
Nissan Motor predicted annual operating profit below even the most pessimistic analyst’s estimate and cut its dividend. Nissan said it plans to pay out 40 yen a share, down from 57 yen, the first reduction since dividends were suspended in 2009.
Nissan issued a bleak earnings outlook, Renault's shares fell nearly 4%
Stocks impacted: Renault (RENA), Nissan Motor (NSANY)
The company lowered profit outlook on the back of slumping US sales, ageing vehicle models and an out-of-sync product cycle. Nissan forecast a 28% plunge in its annual operating profit. The Japanese automaker said it will cut staff and spend 47 billion yen during the next three years to refresh all core models, introduce 20-plus new models and focus on retail sales in the US. The dividend cut will impact Renault, which owns 43% of Nissan. Renault's shares fell sharply on Wednesday, in the wake of a slump in the stock price of its Japanese partner Nissan.
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