Nissan triples profit forecast on strong quarterly results

Nissan tripled its full-year net profit forecast on Tuesday as it rebounded from the impact of the pandemic with a strong quarterly performance, saying it expected to withstand challenges including the global chip crunch and rising raw material prices.

The firm now projects 180 billion yen ($1.6 billion) in net profit for the fiscal year to March 2022, up from an earlier estimate of 60 billion yen.

Nissan’s last yearly net profit in the black was in 2018-19.

For the three months to September, Nissan logged a 54.1 billion yen net profit, reversing a 44.4 billion yen net loss for the same period last year.

“Our strong results are the outcome of diligent financial management, improved quality of sales and continuing product offensive. This has helped us withstand several headwinds,” Nissan CEO Makoto Uchida said in a statement.

The firm has faced a series of trials in recent years, including weak demand during Covid-19 lockdowns and the fallout from the arrest of former boss Carlos Ghosn, now a fugitive in Lebanon.

On Tuesday, the company revised down its full-year sales forecast to 8.8 trillion yen from 9.75 trillion yen, partially because of the impact of a semiconductor shortage plaguing auto firms worldwide.

Supply disruptions have compounded the mismatch between demand for and availability of chips, a key component in modern cars.

Nissan plans to slash its production by around 30 percent from its original plan in October and November because of the chip shortage, public broadcaster NHK reported.

© 2021 AFP