Nissan has reported a fall of 34.6% in consolidated net income for the quarter ended December 31, blaming difficult operating conditions in Europe, China and the US.
In Nissan’s fiscal third quarter (October-December 2012), consolidated net income after taxes totalled 54.1 billion yen (US$670 million, euro 510 million), a year-on-year decline of 34.6%. Third quarter net revenue was 2.2084 trillion yen (US$27.23 billion, euro 21.01 billion), down 5.3% year-on-year. Nissan reported an operating profit of 62.1 billion yen (US$770 million, euro 590 million), down 47.4% compared to the same period in FY2011, and an operating profit margin of 2.8%.
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Nissan also sold 1.159m vehicles worldwide in the October-December quarter, a 3.8% decrease compared to the prior year.
“Nissan’s performance in the third quarter did not meet our expectations. This was primarily the result of difficult operating conditions in Europe for the entire auto industry, in China for Japanese automakers, and in the US for Nissan,” said Nissan President and CEO Carlos Ghosn.
Ghosn said that the company is taking action to bring about a resumption of growth. “We have taken action to reignite our sales momentum and growth under the Nissan Power 88 business plan. Looking forward, we have important vehicle launches. We anticipate further yen correction. We have made swift organisational changes to help stimulate our business performance. And we remain confident that we will meet our full-year outlook.”
Nissan’s forecast for the full fiscal year ending March 31, 2013, is unchanged. Nissan has forecast full fiscal year operating profit outlook of 575 billion yen (US $7.21 billion, euro 5.65 billion) and net income of 320 billion yen (US $4.02 billion, euro 3.14 billion).
In November of last year, Nissan revised its expectations for the year down due to the “strong yen, disruption in China and deteriorating market conditions in Europe”.
