Nissan Reports Weak Q4, Full Year 2020 Financial Results

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Nissan Motor Co. today announced weak financial results for the fourth quarter and the 12-month period ended March 31, 2021. During fiscal year 2020, consolidated net revenue declined to 7.86 trillion yen, resulting in an operating loss of 150.7 billion yen, improved from the full-year forecast at the beginning of the fiscal year, and a net loss¹ of 448.7 billion yen. This includes costs associated with restructuring by 61.3 billion yen as Nissan focused on operational and efficiency improvements to help the ailing business. Nissan expects to breakeven during FY 2021 even though forecast net income will drop by 60 billion Yen. (Nissan Losses ¥37.8 Billion in Q3. Alliance Still Shaky)

Free cash flow for the automotive business was a negative 391.0 billion yen. Nissan claims it has sufficient liquidity to steer through a challenging business environment. At year-end, cash and cash equivalents for the automotive business totaled 1.9 trillion yen. Automotive net cash was 636.0 billion yen. In addition, the company continues to have access to approximately 2.2 trillion yen in unused committed credit facilities. (Nissan Establishes Carbon Neutral Goal for 2050)

Nissan managed to increase sales during an “unprecedently challenging period,” but is suffering – possibly with the notable exception of Toyota – from the ongoing Covid 19 and semiconductor shortage blights. In addition to the COVID-19 impact, external factors including exchange rate fluctuations and semiconductor supply shortages hurt the company’s profitability. (FY2021 Toyota Sales, Production Drop Less than 10%)

Nissan’s global retail volume for fiscal year 2021 is expected to increase by 8.6% from FY2020 at 4.4 million units.

Footnotes

1. Based on average foreign exchange rates of 106.1 JPY /USD and 127.8 JPY /EUR for FY20 Q4
2. TSE report basis – China JV equity basis