Automotive giant Nissan has signalled a significant boost to its profits in the third quarter of its financial year, but highlighted a range of challenges to its global operations.
The Japanese company, which has a major manufacturing site at Sunderland, has released financial results for the period from April to December which show consolidated operating profit of 289.7bn yen (£1.8bn) and an operating profit margin of 3.9%.
Nissan said it had seen “significant year-on-year profit improvement in the third quarter” but also detailed challenges it is facing, including currency fluctuations, increases in raw material prices, the continuing semiconductor shortages and the resurgency of Covid in some parts of the world where it has production facilities. The company said it had seen lower sales volumes than the previous year as a result, but was making “steady progress” with its Nissan NEXT business transformation plan.
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CEO Makoto Uchida said: “The third quarter was also a very challenging business environment. However, the new models we introduced in each market have been very well received by customers, and we are feeling a strong response for the future.
“In addition, improvements in the quality of sales and thorough financial discipline have taken root in our daily activities and are steadily reflected in our business performance. Although it is difficult to foresee the future business environment at this point, we will steadfastly continue our efforts in the fourth quarter toward achieving the revised forecast for the fiscal year.”
Nissan – which saw major losses during the peak of the Covid pandemic – said it had improved operating profit in each quarter of the 2022 financial year so far. It expects sales volumes to reduce by around 8% in the last quarter of the year, however, dur to semiconductor supply shortages and the impact of the Covid-19 infections in China.
Last week Nissan, Renault and smaller Japanese car maker Mitsubishi announced how they are redefining their mutual relationship. The boards of both companies approved equalising the stake each holds in the other to 15%, bringing a better balance to the alliance, while Nissan said it will invest up to 15% in Ampere, Renault’s electric vehicle and software entity in Europe. In 2021 the company announced a £1bn investment, working with battery partners Envision AESC and Sunderland City Council to make the Sunderland plant a leader in the production of electric vehicles.
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