Nissan Motor Expects 11% Drop in Annual Profit Due to Competition, Inflation — Update
By Kosaku Narioka
Nissan Motor projected a double-digit percentage decline in net profit for the new fiscal year, citing heightened competition and high inflation, after it posted lower quarterly earnings.
The Japanese carmaker said Thursday that net profit fell 5.2% from a year earlier to 101.3 billion yen ($651.3 million) for the three months ended March. That beat the estimate of Y70.69 billion in a poll of analysts by data provider FactSet.
While fourth-quarter revenue increased 13% to Y3.514 trillion, thanks to sales growth worldwide, higher production and logistics costs weighed on the bottom line.
For the year that began in April, Nissan projected global sales to rise 7.5% to 3.7 million units, led by North America and Europe. It forecast revenue to increase 7.2% to Y13.600 trillion but net profit to drop 11% to Y380.00 billion.
The automaker expects sales in China to rise 0.8% to 800,000 units this fiscal year, after a 24% decline the previous year amid intensified competition and consumers' shift away from conventional gas-powered vehicles.
In March, Nissan said it intended to start selling 30 new models, including 16 electrified models, as part of efforts to accelerate its transition to electric vehicles and boost total car sales by 1 million units within three years.
The company has been reshaping its global strategy following the restructuring of its alliance with Renault and Mitsubishi Motors announced in February last year. Nissan and Honda Motor said in March that they would study ways to collaborate on EVs, their core parts and software.
Write to Kosaku Narioka at kosaku.narioka@wsj.com
(END) Dow Jones Newswires
May 09, 2024 05:16 ET (09:16 GMT)
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