Nissan Losses ¥37.8 Billion in Q3. Alliance Still Shaky

Ken Zino of AutoInformed.com on Nissan Losses

Nissan COO-CPO Ashwani Gupta (L), CEO Makoto Uchida, center – February 2021 in Japan.

Nissan Motor Company today announced financial results for the April-December period of fiscal year 2020 and a revised outlook for fiscal year 2020. During Q3 of the fiscal year, consolidated net revenue was 2.22 trillion yen, consolidated operating profit was 27.1 billion yen, and the operating profit margin was 1.2%. The net loss in the third quarter was 37.8 billion yen based on an average exchange rate of 124.6 yen/euro for the period.

As for the unstable Alliance post-Ghosn, “Nissan’s results during the Q3 of fiscal year 2020/2021 (October 1st to December 31st 2020), after IFRS restatements, will have a negative contribution to Renault’s Q4 2020 net income estimated at – €123 million,” Renault said in a separate release.

For the first nine months of the Nissans fiscal year, consolidated net revenue was ¥5.32 trillion yen, the consolidated operating loss was ¥131.6 billion yen, and the operating profit margin was -2.5%. The net loss for the nine months was ¥367.7 billion yen. “Following the performance recovery of the third quarter, improvements are being made in consolidated operating loss and operating profit margins,” Nissan said.

FY2020 Outlook

For fiscal 2020, Nissan expects sales volume to decrease by -3.6% over the previous forecast to 4,015,000 vehicles. Despite the negative impact of decrease in volume, Nissan revised its full-year outlook as follows due to claimed improvements in selling expenses as well as sales finance, manufacturing and fixed costs.

Nissan is forecasting net revenue of ¥7.70 trillion. The company foresees an operating loss of ¥205 billion, which is ¥135 billion better than the previous outlook. A net loss of ¥530 billion is expected, which is ¥85 billion better than the previous outlook.

The company has filed the new fiscal year outlook at the Tokyo Stock Exchange. Calculated under the equity accounting method for Nissan’s joint venture in China, the forecasts for the fiscal year ending March 31, 2021, are:

On a management pro forma basis, which includes the proportionate consolidation of results from Nissan’s joint venture in China, the operating loss was ¥40.4 billion, equivalent to an operating margin of -0.7%. The net loss was ¥367.7 billion.

Nissan says it continues to strategically accumulate liquidity under the difficult business environment including the spread of Covid-19 pandemic, in order to overcome the crisis. At the end of September 2020, cash and cash equivalents were approximately ¥2 trillion and net cash totaled ¥525.5 billion for the automotive segment. Furthermore, Nissan has unused committed credit facilities of approximately ¥2.1 trillion at the end of December 2020.

This entry was posted in economy, financial results, results and tagged , , , , , . Bookmark the permalink.

Leave a Reply

Your email address will not be published. Required fields are marked *