Nissan shares tumble to 10-1/2 year low after earnings rout

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TOKYO (Reuters) – Shares of Nissan Motor Co (T:) fell to their lowest in 10-1/2 years on Friday, tumbling nearly 10% after the struggling Japanese automaker cut its annual profit forecast and said it would not pay a dividend in the second half.

Japan’s No.2 automaker has been badly shaken by the scandal surrounding former boss Carlos Ghosn. But that crisis has been compounded by worsening sales and a brand image tarnished by years of heavy discounting in the United States and other markets.

In a sign of the deepening woes, it also on Thursday posted its first quarterly net loss in nearly a decade.

“It is too early for a halt in downward trend in Nissan’s share price in this environment,” Jeffries analyst Takaki Nakanishi wrote in a note to clients following the results on Thursday.

Shares of Nissan finished down 9.6% at 513.7 yen in Tokyo trade on Friday, their lowest in 10-1/2 years and their biggest one-day fall since 2013.

The dividend cut will be particularly painful for top shareholder Renault SA (PA:). The French carmaker, in turn, on Friday said it would cut its dividend for 2019.

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