Nissan Posts 14% Drop in Net Profit
Nissan Motor Co. says slumping sales in major markets cut its fiscal first quarter net income 14% to 116 billion yen ($1 billion).
#economics
Nissan Motor Co. says slumping sales in major markets cut its fiscal first quarter net income 14% to 116 billion yen ($1 billion). Operating profit shrank 29% to 109 billion yen ($983 million).
Unit sales in April-June shrank 3% to 1.31 million vehicles, and revenue slipped 2% to 2.7 trillion yen ($225 billion). Unfavorable exchange rates and rising commodity costs also lowered operating profit by 46 billion yen ($415 million).
Nissan says its sales in China climbed 7% to 336,000 units). Volume also rose in 7% to 200,000 units elsewhere in Asia and in Latin America, the Middle East and Africa. But deliveries for the period fell in North America (-10% to 482,000 units), Europe (-13% to 162,000) and Japan (-1% to 130,000).
The company says new product should improve results later this year. Nissan reiterates that it expects full-fiscal-year sales will expand 3% to 5.93 million units, but operating profit and net income will drop by 6% and 33%, respectively.
RELATED CONTENT
-
Inside Ford
On this edition of “Autoline After Hours” Joann Muller, Detroit bureau chief for Forbes, provides insights into what she’s learned about Ford, insights that are amplified on the show by our other panelists, Stephanie Brinley, principal analyst at IHS Markit who specializes in the auto industry, and Todd Lassa, Detroit Bureau Chief for Automobile.
-
Mazda, CARB and PSA North America: Car Talk
The Center for Automotive Research (CAR) Management Briefing Seminars, an annual event, was held last week in Traverse City, Michigan.
-
China and U.S. OEMs
When Ford announced its 3rd quarter earning on October 24, the official announcement said, in part, “Company revenue was up 3 percent year over year, with net income and company adjusted EBIT both down year over year, primarily driven by continued challenges in China.” The previous day, perhaps as a preemptive move to answer the question “If things are going poorly in China, what are you doing about it?, Ford announced that it was establishing Ford China as a stand-alone business unit.