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.
About Ken Zino
Ken Zino, editor and publisher of AutoInformed, is a versatile auto industry participant with global experience spanning decades in print and broadcast journalism, as well as social media. He has automobile testing, marketing, public relations and communications experience. He is past president of The International Motor Press Assn, the Detroit Press Club, founding member and first President of the Automotive Press Assn. He is a member of APA, IMPA and the Midwest Automotive Press Assn.
He also brings an historical perspective while citing their contemporary relevance of the work of legendary auto writers such as Ken Purdy, Jim Dunne or Jerry Flint, or writers such as Red Smith, Mark Twain, Thomas Jefferson – all to bring perspective to a chaotic automotive universe.
Above all, decades after he first drove a car, Zino still revels in the sound of the exhaust as the throttle is blipped during a downshift and the driver’s rush that occurs when the entry, apex and exit points of a turn are smoothly and swiftly crossed. It’s the beginning of a perfect lap.
AutoInformed has an editorial philosophy that loves transportation machines of all kinds while promoting critical thinking about the future use of cars and trucks.
Zino builds AutoInformed from his background in automotive journalism starting at Hearst Publishing in New York City on Motor and MotorTech Magazines and car testing where he reviewed hundreds of vehicles in his decade-long stint as the Detroit Bureau Chief of Road & Track magazine. Zino has also worked in Europe, and Asia – now the largest automotive market in the world with China at its center.
Nissan Losses ¥37.8 Billion in Q3. Alliance Still Shaky
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.
About Ken Zino
Ken Zino, editor and publisher of AutoInformed, is a versatile auto industry participant with global experience spanning decades in print and broadcast journalism, as well as social media. He has automobile testing, marketing, public relations and communications experience. He is past president of The International Motor Press Assn, the Detroit Press Club, founding member and first President of the Automotive Press Assn. He is a member of APA, IMPA and the Midwest Automotive Press Assn. He also brings an historical perspective while citing their contemporary relevance of the work of legendary auto writers such as Ken Purdy, Jim Dunne or Jerry Flint, or writers such as Red Smith, Mark Twain, Thomas Jefferson – all to bring perspective to a chaotic automotive universe. Above all, decades after he first drove a car, Zino still revels in the sound of the exhaust as the throttle is blipped during a downshift and the driver’s rush that occurs when the entry, apex and exit points of a turn are smoothly and swiftly crossed. It’s the beginning of a perfect lap. AutoInformed has an editorial philosophy that loves transportation machines of all kinds while promoting critical thinking about the future use of cars and trucks. Zino builds AutoInformed from his background in automotive journalism starting at Hearst Publishing in New York City on Motor and MotorTech Magazines and car testing where he reviewed hundreds of vehicles in his decade-long stint as the Detroit Bureau Chief of Road & Track magazine. Zino has also worked in Europe, and Asia – now the largest automotive market in the world with China at its center.