On November 7, Nissan announced that in the second quarter of this year (July to September), its net revenue was 2.
99 trillion yen, down from 3.
15 trillion yen in the same period last year.
its operating profit was 31.
9 billion yen, lower than the average market expectation of 65 billion yen.
it was much lower than 208.
1 billion yen in the same period last year, a year-on-year decline of as much as 85%.
operating profit margin fell to 1.
1% from 6.
6% in the same period last year.
The net loss was 9.
3 billion yen, compared with a net profit of 190.
7 billion yen in the same period last year.
In the first half of 2024 (April-September), Nissan’s net revenue fell 1.
3% year-on-year to 5.
98 trillion yen, operating profit plunged 90.
2% to 32.
908 billion yen, and operating profit margin fell to only 0.
5% from 5.
6% in the same period last year.
Net profit plunged 93.
5% to 19.
223 billion yen.
Currently, Nissan has cut its financial forecast for fiscal year 2024 (April 2024 to March 2025) by 1.
3 trillion yen to 12.
7 trillion yen, which means that Nissan now expects little increase in net revenue for fiscal 2024 compared with the same period last year.
Nissan, meanwhile, cut its net operating profit forecast by 350 billion yen to 150 billion yen.
In order to revive the company’s business, Nissan CEO Makoto Uchida has laid out plans to expand Nissan’s electric car product line and form a new partnership, and aims to sell 1 million more vehicles a year by 2027.
But analysts say Nissan’s new product line lacks highlights and there are not enough hybrid models, which is a problem as consumer demand for electric vehicles slows.
“it is consumer demand for hybrid cars that keeps Toyota and Honda strong profitability,” said James Hong, an analyst at Macquarie Securities Korea Securities in Korea.
Therefore, Nissan also needs to re-examine its electric vehicle strategy.
” James Hong also said that the only way for Nissan to increase sales is to cut prices.
Photo: Nissan, in addition, Nissan will sell nearly 1/3 of its partner Mitsubishi Motors, which currently holds slightly more than 34%.
Meanwhile, Nissan will sell about 10 per cent of its shares through the Tokyo Stock Exchange, worth about 68.
6 billion yen at the end of trading on November 7th.
Like many established international automakers, Nissan faces difficulties in China, the world’s largest car market.
In June, Nissan said it would stop production at its Changzhou plant because of a sharp drop in sales in China.
Earlier this year, Nissan cut its production target for fiscal year 2024 by 50, 000 to 3.
65 million.
Nissan’s global sales fell nearly 4 per cent year-on-year to 1.
6 million vehicles in the first half of 2024, so it could be challenging to meet its full-year production target.
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