Nissan Motor today announced “strong financial results” for the first quarter ended 30 June, 2021, and revised upward its full year profit outlook for fiscal year 2021.

Q1 net revenue was JPY2.008 trillion, consolidated operating profit was JPY75.7bn and operating profit margin was 3.8%. Net income was JPY114.5bn.

This contrasted with Covid hit fiscal Q1 2020 when revenue was JPY1,174.2bn, operating loss was JPY153.9bn, operating profit margin was negative 13.1% and  the automaker booked a net loss of JPY285.6bn.

Nissan said profitability improved as it continued to improve performance in the US and quality of sales in each market.

“Nissan also made effective use of its inventory and conducted strategic production during the first quarter, which minimised the impact of the semiconductor shortage and contributed to operating profit,” it added.

FY2021 outlook

The shortage of semiconductor supply was expected to have a significant impact on Nissan’s sales volume in the second quarter and “the issue will continue”. However, sales volume will contribute to the operating profit supported by new vehicle launches.

For the full fiscal year, Nissan is forecasting net revenue of JPY9.75 trillion and an operating profit of JPY150bn.

Net income of JPY60bn is expected, JPY120bn above the previous outlook.

CEO Makoto Uchida said: “We expect a recovery in the second half supported when several new models will go on sale in core markets. Nissan will firmly pursue our goal of achieving a 2% operating margin in fiscal year 2021.”

Renault said Nissan’s results would contribute an estimated EUR173m to Renault Group’s second quarter 2021 net income.