Posted on 11 Nov 2024
Nissan Motor said Thursday it revised downward its forecast for full fiscal 2024 amid low performance in the first half, Kallanish reports.
The Japanese carmaker now expects operating profit to reach JPY 150 billion ($976 million), down JPY 350 billion from its previous estimate. Net revenue is now targeted at JPY 12,700 billion, down JPY 1,300. Net income is yet to be determined due to ongoing assessment of costs necessary for the planned turnaround efforts.
As part of its cost-reducing measures, the company will cut its global workforce by 9,000 jobs. Global production will be reduced by 20%, helping the company to shrink fixed and variable costs by JPY 400 billion by FY 2026, compared with FY24.
During H1 FY24, the automaker’s consolidated operating profit dropped 90% year-on-year, with operating profit margin reaching 0.5%, down 5.1 percentage points y-o-y. Net revenue in the period decreased 1.3% JPY 5.98 trillion.
“Profitability was affected by higher selling expenses and inventory optimisation efforts, particularly in the US, along with rising manufacturing costs,” the company explains.
Global sales, meanwhile, were down 1.7% to just under 1.6 million units. In China, sales declined 5.4% y-o-y. Nissan did not disclose figures by powertrain but said it plans to expand its plug-in hybrid efforts in China and e-POWER sales in the US.
It aims to sell 3.5 million units/year by FY26, which should include eight new energy vehicle models specifically for the Chinese market.
Meanwhile, Nissan also seeks to enhance investment efficiencies and product competitiveness through strategic partnerships with Renault Group, Mitsubishi Motors Corporation, and Honda Motor.
To better implement new goals, Nissan also appointed a new chief performance officer responsible for sales and profit, effective from 1 December.
Source:Kallanish
