Hyperdrive
Nissan’s Slumping Profit, Dividend Foreshadow Renault Decline
- Japanese carmaker’s fiscal year payout to be lowest since 2011
- French partner’s earnings, dividend also expected to be lower
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Nissan Motor Co.’s efforts to halt declines in key markets are faltering, forcing the automaker to cut its full-year profit outlook a second time and scrap its year-end dividend to investors, including top shareholder and partner Renault SA.
The earnings sent the French carmaker’s shares down to their lowest intraday level in seven years and highlighted the companies’ inter-dependence. Renault, which owns 43% of Nissan and relies on its dividends, is expected to report weaker 2019 earnings and a cut to its own payout on Friday compared with the previous year.