Nissan has reported a big cut in operating profit in the third quarter as it felt the impact of costs related to its vehicle inspection issue in Japan as well as negative pricing and stock adjustments in Japan.
In the nine month period ended 31st December, Nissan generated an operating profit of 364.2 billion yen, 27.6% below the same quarter of last year. Net revenues were posted at 8.53 trillion yen, equivalent to an operating margin of 4.3% (versus 6.1% in the first nine months of FY2016). During the period, the group’s performance was adversely impacted by special items related to the final vehicle inspection issue in Japan, along with slowing sales growth, negative pricing trends and inventory adjustments in the US market.
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Nissan also reported a halving in Q3 operating profit, at 82.4 billion yen.
Nissan said that operating profit for the full fiscal year is now forecast at 565 billion yen, some 12.4% below the previous forecast.
There was some good news for Nissan in the part-year results. Net Income in the first three quarters reached 578.1 billion yen, up 163.9 billion yen, as the reduction in operating profit was more than offset by increased net non-operating income and the favourable impact of US tax reform.
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