Nissan posts loss of 16.5 billion yen for Q1

Nissan Motor

Japanese automaker Nissan Motor Co. posted a smaller-than-expected 16.5 billion yen or $175 million loss for the first fiscal quarter.

Earlier, a group four analysts had projected loss of 58.5 billion yen for the quarter ended June 30.

Nissan Motor Co., Japan's No. 3 automaker held slumping sales of motor vehicles and stronger yen responsible for the April-June quarter loss.

Tokyo-based Nissan's operating profits for the concerned quarter dropped 86 percent and sales plunged 35 percent from a year earlier to 1.51 trillion yen.

In order to cut costs, Nissan's CEO Carlos Ghosn has plans to hack as many as 20,000 jobs during the present year.

Nissan has witnessed a fall of 23 percent in global vehicle sales to 723,000. Company's domestic sales plunged by 22 percent to 116,000 vehicles in the quarter ended June 30.

Nissan is expecting worldwide vehicle sales to come down 9.7 percent to 3.08 million vehicles.

However, sales in China took leap of 9.3 percent to 145,000 vehicles.

Nissan shares soared 0.8 percent in Tokyo. However, earnings were posted after trading ended.