Nissan Motor Reports Drop in Third-Quarter Profit, Cuts Sales Forecast — Update
By Kosaku Narioka
Nissan Motor reported a drop in third-quarter net profit and cut its annual forecast for sales volume, projecting a decline in all major markets.
The Japanese carmaker said Thursday that net profit fell 42% from a year earlier to 29.14 billion yen ($196.7 million) for the three months ended Dec. 31. That missed the estimate of Y76.14 billion in a poll of analysts by data provider Quick.
It cut its global sales forecast to 3.55 million units for the fiscal year ending March, down from its previous projection of 3.70 million units, citing disruption in logistics and intensifying competition.
Nissan, nonetheless, maintained its fiscal-year forecasts for revenue and net profit, thanks to the effect of a weaker yen.
It continues to expect net profit to rise 76% to Y390.00 billion and revenue to increase 23% to Y13.000 trillion.
Third-quarter revenue increased 9.5% from a year earlier to Y3.108 trillion. Smaller gains from affiliates and lower foreign-exchange gains weighed on the bottom line.
Nissan has been remaking its strategy in major markets, following the restructuring of its alliance with Renault and Mitsubishi Motors announced in February last year. Nissan plans to invest in Ampere, the electric-vehicle unit to be carved out of Renault.
Responding to intensifying competition and consumers' shift away from conventional gas-powered vehicles, Nissan plans to release new models in China, including electric vehicles and a plug-in hybrid car, in the coming years and begin exporting vehicles from the country in 2025.
Write to Kosaku Narioka at kosaku.narioka@wsj.com
(END) Dow Jones Newswires
February 08, 2024 03:54 ET (08:54 GMT)
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