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Nissan full-year profit misses as sales fall short of estimates

Tan KW
Publish date: Fri, 19 Apr 2024, 05:44 PM
Tan KW
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Nissan Motor Co said full-year operating profit came in at ¥530 billion - 15% lower than it forecast as recently as February as sales fell short of expectations.

Sales were 3.44 million units, less than the 3.55 million forecast given on Feb 8, the automaker said on Friday. That compares with around five million as little as five years ago, with an ageing lineup, lack of hybrid options in North America and intensifying competition in China contributing to the decline. 

An earthquake in Japan earlier this year and other logistics issues also affected sales, according to the company. Net income in the 12 months ended March 31 was ¥370 billion, compared with February’s forecast of ¥390 billion. 

“The US has a big impact and the hybrid mix is growing more than what we anticipated,” chief executive officer Makoto Uchida said during a virtual press conference. Nissan is also bearing the cost of investments that suppliers made based on previous sales targets, as well as providing relief to them from increasing inflation, he said. 

Last month, Nissan unveiled plans to sell an additional one million vehicles a year by 2027 by introducing dozens of new models - including more cost-effective electric vehicles (EVs). It also announced a partnership with Honda Motor Co to develop EV technology. The rivals, which initially signed a memorandum of understanding, said they will collaborate on core technology for battery-based EVs, including software.

On the topic of the weakening yen, which is trading near a 34-year low, Nissan’s chief financial officer Stephen Ma said the foreign-exchange impact is “positive” and the company will give a detailed analysis during its earnings announcement, which is likely to come next month. For now, the company has no plans to change its dividend policy, he said.


  - Bloomberg


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