Nissan’s operating profit and net profit have fallen to the lowest point in nearly a decade.
Editor’s note: This article is from “Future Car Daily” (WeChat public ID: auto-time), author: NIU Xiao Tong.
Author | Niu Xiaotong
Editor | Li Huanhuan
Nissan Motors, which was affected by the “Ghosn Incident”, is experiencing a dilemma in global market revenue declines.
On November 12, after the Tokyo stock market closed, Nissan Motor announced the second quarter of the 2019 (July-September) performance report. The data shows that Nissan’s operating profit for the second quarter was 30 billion yen (about 1.9 billion yuan), a sharp drop of 70% compared with the same period last year, far lower than the 474.8 of analysts of Refinitiv Billion yen is expected.
In combination with the first quarter data, the net profit of Nissan Motor Co., Ltd. in the first half of FY 2019 (April-September) was 65.4 billion yen (about RMB 4.2 billion), a year-on-year decline of 73.5%. Nissan’s operating profit and net profit have fallen to their lowest point in nearly a decade.
In terms of sales data, Nissan experienced a decline in sales worldwide in the past fiscal quarter. In the first half of FY 2019, Nissan’s sales in Japan fell 1.3% to 281,000 units, and sales in the US market fell 4.3% to 679,000 units. In the Chinese market, Nissan’s sales fell by 12.8% to 718,000.
In addition, in other markets including Oceania, Latin America, the Middle East and Africa, Nissan’s total sales volume decreased by 11.4% year-on-year to 360,000 units. Globally, Nissan Motor sold 2.5 million units in the first half of FY19, down 6.8% year-on-year, a decline that exceeded the overall decline of 5.9% in the global automotive industry.
Based on current financial performance, Nissan Motor’s global sales forecast for FY 2019 was reduced to 5.24 million units, down 5.4% from previous expectations. Previously, in July, Nissan Motors predicted that global sales would increase to 5.54 million units this fiscal year.
At the same time, Nissan lowered its full-year profit forecast for 2019 to its lowest level in 11 years, with an estimated revenue of 10.6 trillion yen, down 6.2% from expectations.
Nissan said that the decline in profits was mainly due to the decline in sales, exchange rate fluctuations and rising raw material costs. Some analysts believe that Nissan’s current profit decline is due to the company’s management chaos after the former chairman Carlos Ghosn was dismissed.
In response to the dilemma, Nissan is undergoing a global restructuring plan, including layoffs of 12,500 worldwide.People, accounting for about 10% of Nissan’s global workforce. In addition, Nissan plans to reduce its global production capacity by 10%, thereby increasing the operating rate and reducing the product lineup by more than 10%.
———————
I am Niu Xiaotong, the author of the Future Auto Daily, focusing on the dynamics of the car and travel, and welcome the news and exchanges. My WeChat is NEXT0117, please add a note name, position, company.
