Nissan Motor Cuts Annual Profit Estimate on Lower Vehicle Sales — 2nd Update
By Kosaku Narioka
Nissan Motor cut its net profit estimate for the fiscal year, missing analysts' expectations, as it sold fewer cars than previously expected due to heightened competition.
The Japanese automaker on Friday said net profit likely rose 67% to 370.00 billion yen ($2.39 billion) for the year ended March, lower than its previous projection of Y390.00 billion. Analysts expected Y403.90 billion in net profit, according to a FactSet poll.
Nissan said revenue is estimated to have increased 19% to Y12.600 trillion, below its previous forecast of Y13.000 trillion.
The Japanese automaker said that it sold 3.44 million vehicles, fewer than previously expected, and that it took steps to mitigate inflation's impact on suppliers, which affected its bottom line.
In February, it lowered its fiscal-year global sales forecast to 3.55 million units from 3.70 million units, citing disruption in logistics and intensifying competition.
Nissan Chief Executive Makoto Uchida said Friday that market demand for cars declined, making its operating environment more difficult.
Last month, the automaker said it intended to start selling 30 new models, including 16 electrified models, as part of efforts to accelerate its transition to electric vehicles and boost total car sales by 1 million units within three years.
Nissan on Friday said it will work more effectively with its suppliers to achieve that goal.
The company has been reshaping its global strategy following the restructuring of its alliance with Renault and Mitsubishi Motors announced in February last year. Nissan and Honda Motor said last month that they would study ways to collaborate on EVs, their core parts and software.
--Chieko Tsuneoka in Tokyo contributed to this article.
Write to Kosaku Narioka at kosaku.narioka@wsj.com
(END) Dow Jones Newswires
April 19, 2024 05:02 ET (09:02 GMT)
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