TOKYO, May 12 (Reuters) - Nissan Motor Co shares
slumped as much as 12.2% on Wednesday to their lowest in five
months after the Japanese automaker's weaker-than-expected
guidance for the current fiscal year.
Nissan defied expectations on Tuesday for a return to
profitability in the year ending March 2022, as the global chip
shortage and raw material price increases curb its recovery from
a record annual operating loss.
The forecast by Japan's No.3 car maker by sales to break
even for the year that began on April 1 was lower than a 241.7
billion yen ($2.23 billion) profit predicted by SmartEstimate.
Nissan CEO Uchida said on Tuesday that the automaker
foresees an operating profit even as it faces a huge impact from
business risks including semiconductor supply issues. He added
that the company will give updates on its outlook guidance after
the first quarter.
Toshihide Kinoshita, analyst at SMBC Nikko, wrote in a note
that Nissan's "somewhat conservative guidance" was within
expectations as the automaker faces uncertainty as it tries to
improve profitability, but its break-even guidance was a
"While global OEMs continue to post strong results,
Nissan's slow recovery stands out, though the low-ball guidance
may include an impression strategy while aiming for an upward
revision ahead," Jefferies analyst Takaki Nakanishi wrote in a
note, adding that the stock's fall will be short-lived.
"Despite no clear disclosure being made, we estimate that
the company may have factored in about ¥150bn in risk factors as
a basis of the breaking-even guidance," Nakanishi wrote.
The company said its annual operating loss in the year ended
March 31 widened to 150.65 billion yen from a 40 billion yen
shortfall in the previous year, though it beat its February
(Reporting by Eimi Yamamitsu, Hideyuki Sano; Editing by