Japan's Nissan Motor cut its forecast for annual operating profit by 14.5% on Friday, citing a decline in car sales that was less than anticipated in addition to other issues.
For the year that concluded in March, Japan's third-largest automaker by volume now projects an operating profit of 530 billion yen ($3.43 billion), down from 620 billion yen previously. Instead of 390 billion yen, a net profit projection of 370 billion yen has been made.
Within two months of a reduction down to 3.55 million units, partially because of a poor performance in China, Nissan announced that its car sales will total 3.44 million vehicles for the year.
At a press conference, CEO Makoto Uchida stated that the company's sales were negatively impacted by the earthquake that struck Japan's Noto Peninsula on New Year's Day, the growing rivalry in the American market, and shipping problems in the Red Sea.
Stronger-than-expected demand for hybrid cars in the United States has impacted Nissan's quarterly sales performance, according to Uchida. This trend has primarily helped rival Japanese automaker Toyota.
In the most recent revision to its mid-term business plan, Nissan determined that it would be difficult to meet its initial sales targets for certain models, which led to the downsizing of its profit prediction, according to Uchida. Nissan also provided support to suppliers.
He clarified that this support had nothing to do with Japan's fair trade authority, which had denounced Nissan last month for neglecting to pay 36 suppliers an estimated 3 billion yen over a roughly two-year period starting in January 2021 in breach of the subcontractor act.
Nissan's revised full-year operating profit estimate for the recently concluded fiscal year remains 40% higher than the 377 billion yen profit from the previous fiscal year, which ended on March 31, 2023.
(Source:www.usnews.com)
For the year that concluded in March, Japan's third-largest automaker by volume now projects an operating profit of 530 billion yen ($3.43 billion), down from 620 billion yen previously. Instead of 390 billion yen, a net profit projection of 370 billion yen has been made.
Within two months of a reduction down to 3.55 million units, partially because of a poor performance in China, Nissan announced that its car sales will total 3.44 million vehicles for the year.
At a press conference, CEO Makoto Uchida stated that the company's sales were negatively impacted by the earthquake that struck Japan's Noto Peninsula on New Year's Day, the growing rivalry in the American market, and shipping problems in the Red Sea.
Stronger-than-expected demand for hybrid cars in the United States has impacted Nissan's quarterly sales performance, according to Uchida. This trend has primarily helped rival Japanese automaker Toyota.
In the most recent revision to its mid-term business plan, Nissan determined that it would be difficult to meet its initial sales targets for certain models, which led to the downsizing of its profit prediction, according to Uchida. Nissan also provided support to suppliers.
He clarified that this support had nothing to do with Japan's fair trade authority, which had denounced Nissan last month for neglecting to pay 36 suppliers an estimated 3 billion yen over a roughly two-year period starting in January 2021 in breach of the subcontractor act.
Nissan's revised full-year operating profit estimate for the recently concluded fiscal year remains 40% higher than the 377 billion yen profit from the previous fiscal year, which ended on March 31, 2023.
(Source:www.usnews.com)