In the challenging terrain of global auto sales, Nissan's recent financial results reveal a mixed picture of resilience and vulnerability. The Yokohama-based automaker encountered a significant dip in its profits during the October-December quarter, with earnings plummeting to roughly half of the previous year's figures. Despite this setback, Nissan maintains its financial forecast, demonstrating a cautious optimism in the face of adversity.
The company's profit for the last quarter stood at 29 billion yen ($195 million), a stark decrease from the 50.6 billion yen recorded a year earlier. This downturn comes amidst a nearly 10% surge in quarterly sales, reaching 3.1 trillion yen ($21 billion), underscoring the complexity of Nissan's current financial landscape. The automaker, known for its Leaf electric car, Infiniti luxury models, and Z sportscars, faces a particularly tumultuous market in China.
Stephen Ma, Nissan's CFO, highlighted the intense competition and price wars in the Chinese auto market, where local EV giants like BYD dominate. Nissan's sales in China saw a dramatic 35% decline from the previous year, marking a significant challenge for the company. However, a silver lining emerges in the U.S. market, where Nissan's sales soared by approximately 30%, somewhat cushioning the impact of its struggles in China.
For the fiscal year ending in March, Nissan reports a 22% increase in global sales, amounting to 9.17 trillion yen ($61.7 billion). The automaker stands by its annual profit forecast of 390 billion yen ($2.6 billion) on 13 trillion yen ($87 billion) in sales, despite adjusting its global vehicle sales projection to 3.55 million, down from an earlier estimate of 3.7 million but still an improvement over the previous year's 3.3 million.
The table below provides a snapshot of Nissan's financial performance and projections:
| Metric | Oct-Dec Quarter | Year-to-Date | Annual Projection |
|---|---|---|---|
| Profit (yen) | 29 billion | N/A | 390 billion |
| Sales (yen) | 3.1 trillion | 9.17 trillion | 13 trillion |
| Global Vehicle Sales | N/A | N/A | 3.55 million |
Despite the setbacks in China, Nissan anticipates growth in the U.S., Japan, and Europe, signaling a strategic pivot to leverage strengths in these markets. The company's journey through the fiscal year exemplifies the dynamic and often unpredictable nature of the global automotive industry, where adaptability and resilience become key to navigating through turbulent times.
