Nissan Motor Expects Drop in Annual Profit Due to Heightened Competition, Inflation
By Kosaku Narioka
Nissan Motor projected a drop in fiscal-year net profit, citing heightened competition and high inflation, after it posted lower quarterly net profit.
The Japanese carmaker said Thursday that net profit declined 5.2% from a year earlier to 101.3 billion yen ($651.3 million) for the three months ended March. That beat the estimate of Y70.69 billion in a poll of analysts by data provider FactSet.
Fourth-quarter revenue increased 13% to Y3.514 trillion.
For the year that began in April, Nissan projected global sales to rise 7.5% to 3.7 million units. It expects revenue to increase 7.2% to Y13.600 trillion but net profit to drop 11% to Y380.00 billion.
In March, Nissan 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.
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 in March that they would study ways to collaborate on EVs, their core parts and software.
Write to Kosaku Narioka at kosaku.narioka@wsj.com
(END) Dow Jones Newswires
May 09, 2024 04:17 ET (08:17 GMT)
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