Nissan Motor said on February 12 that it forecasts a net loss of 650 billion yen for the current fiscal year through the end of March.

This would mark the second consecutive year of deficit for the struggling Japanese carmaker.

Nissan said the anticipated loss is due to ballooning structural reform costs associated with rebuilding its business, including a re-evaluation of asset values and restructuring expenses.

As for the projected operating loss for the full business year, the company revised its previous figure upward by a whopping 215 billion yen to 60 billion yen.

While the impact of tariffs remains large, Nissan intends to limit losses by reducing costs for research and development as well as production.

Sales volume is forecast to total 3.2 million units, 4.4 percent lower than in the previous fiscal year.

Nissan President and CEO Ivan Espinosa said that he has been saying this is a year of structural reforms and that costs and losses will occur when carrying out restructuring.

He said the company’s management reconstruction plans are progressing smoothly ahead of schedule.