YOKOHAMA (Reuters) – Nissan Motor Co (7201.T) reported a 70% drop in quarterly revenue on Tuesday and reduce its full-year forecast to an 11-year low, hit by a powerful yen and falling gross sales, and highlighting the turmoil on the Japanese automaker after the ouster of Carlos Ghosn.

FILE PHOTO: Nissan emblem is seen in Tokyo Motor Present in Tokyo, Japan October 24, 2019. REUTERS/Soe Zeya Tun

The {latest} weak exhibiting from Nissan, which additionally slashed its interim dividend by 65% after its worst second-quarter efficiency in 15 years, illustrates the size of the work forward for its new govt workforce, which is because of take over on Dec. 1.

Following the ouster of former chairman Ghosn nearly a 12 months in the past, Nissan has been battered by falling revenue, uncertainty over its future management and tensions with {top} shareholder Renault SA (RENA.PA) – whose shares fell 2% to their lowest since April 2013 after Nissan’s downbeat steerage.

Nissan shares, down 19% this 12 months, closed up 1% at 714.5 yen earlier than the outcomes announcement.

Working revenue at Japan’s second-biggest automaker by gross sales got here in at 30 billion yen ($275 million) in July-September versus 101.2 billion yen a 12 months earlier.

That in contrast with a imply forecast of 47.48 billion yen from 9 analyst estimates compiled by Refinitiv. Nissan introduced an interim dividend of 10 yen per share, down from 28.50 yen a 12 months in the past.

The corporate’s international automobile gross sales fell 7.5% to 1.27 million within the quarter. Gross sales in China, its greatest market, fell 2.5%, whereas these in america fell 4.5%.

“Our gross sales in China outpaced the market, however gross sales in different key areas, together with the U.S., Europe, and Japan underperformed,” Stephen Ma, a company vp who will turn into chief monetary officer subsequent month, advised reporters.

Slowing demand for vehicles in america and China, the world’s greatest auto markets, has led to cut-throat competitors, and Nissan’s hunch in first-half gross sales has knocked working revenue off track from the automaker’s full-year goal.

“We’re revisiting all our assumptions, and as you may see that’s the reason we revised down our forecast for gross sales quantity for the complete 12 months,” Ma stated.

Nissan slashed its full-year working revenue forecast by 35% to 150 billion yen, which might be its worst full-year efficiency in 11 years.

It now sees international retail gross sales at 5.2 million automobiles, down from a earlier forecast for five.5 million, bracing for its worst annual gross sales in six years.

For a graphic on Nissan working revenue, margin, click on: right here

Nissan previously few weeks has introduced a revamp of its {top} ranks with youthful executives together with Ma, whereas naming the top of its China enterprise, 53-year-old Makoto Uchida, as its subsequent chief govt. The corporate is looking for to attract a line below the legacy of Ghosn, who’s awaiting trial in Japan on expenses of monetary misconduct, which he denies.

The automaker stated it could maintain a rare shareholders assembly on Feb. 18, 2020, to vote on a proposal for Uchida and different members of the brand new govt workforce to turn into firm administrators, whereas former Nissan CEO Hiroto Saikawa, outgoing interim CEO Yasuhiro Yamauchi and former Renault CEO Thierry Bollore had been scheduled to vacate their director posts.

Years of heavy discounting and fleet gross sales, notably in america, has cheapened the automaker’s model picture whereas reducing automobile resale worth and denting revenue.

Nissan is implementing a worldwide restoration plan below which it’ll axe almost one-tenth of its workforce and reduce international automobile manufacturing by 10% via 2023 to rein in prices which it has stated ballooned when Ghosn was CEO.

Reporting by Naomi Tajitsu; Modifying by Christopher Cushing, David Dolan and Louise Heavens

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