Nissan Motor Shares Slump After Sales Outlook Cut, Disappointing Quarterly Results

By Kosaku Narioka

Nissan Motor shares fell sharply after it reported a drop in third-quarter net profit and cut its annual forecast for sales volume.

Shares were recently 11% lower at 553.9 yen after falling as much as 12% earlier Friday morning.

Nissan said Thursday after market close that it lowered its global sales forecast to 3.55 million units for the fiscal year ending March, down from its previous projection of 3.70 million units.

Citing logistics disruptions and intensifying competition, the automaker projected a sales-volume decline in all major markets.

For the three months ended Dec. 31, Nissan said net profit dropped 42% from a year earlier to Y29.14 billion ($195.2 million). That fell short of the estimate of Y76.14 billion in a poll of analysts by data provider Quick.

Smaller gains from affiliates and lower foreign-exchange gains weighed on the bottom line, while revenue rose 9.5% from a year earlier to Y3.108 trillion.

Despite projected lower sales volume, Nissan kept its fiscal-year forecasts for revenue and net profit unchanged, citing the effect of a weaker yen. It continues to project that net profit will climb 76% to Y390.00 billion and revenue will rise 23% to Y13.000 trillion.

Write to Kosaku Narioka at kosaku.narioka@wsj.com

(END) Dow Jones Newswires

February 08, 2024 21:53 ET (02:53 GMT)

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