Nissan Motor announced a further deterioration in its financial performance in the third quarter of the current fiscal year (FY2024), as the Japanese automaker continued to struggle with rising global competition.
While consolidated revenues in the October-December 2024 period increased by almost 2% year-on-year to JPY3,159bn, operating profit plunged by 78% to JPY31.1bn. The automaker also incurred a net loss of JPY14.1bn in the third quarter compared with a net profit of JPY29.1bn a year earlier.
In the first three quarters of the current fiscal year, between April and December 2024, Nissan’s consolidated revenues dropped marginally year-on-year to JPY9,143bn, while operating profits plunged by 88% to JPY64bn – resulting in an operating margin of 0.7% compared with 5.2%. Net earnings plunged by 98% to JPY5.1bn.
Nissan revised down its full-year financial forecast from the previous quarter, with FY2024 revenues now expected to amount to JPY12,500bn, while generating an operating profit of JPY120bn and a net loss of JPY80bn.
Nissan, which formally announced earlier this week that it had discontinued merger talks with Honda and Mitsubishi, said it is implementing measures to turn around its performance and create “a leaner, more resilient business capable of swiftly adapting to changes in the market.”
The company’s CEO, Makoto Uchida, said in a statement: “Nissan is fully committed to its turnaround actions, aiming to reduce costs by around JPY400bn. We are dedicated to achieving a more efficient cost structure while driving top-line growth through enhanced competitive products that cater to the diverse needs of our customers. We are executing our turnaround—centered on efficiency and growth—with pace and purpose."
Nissan further clarified that it aims to reduce fixed and variable costs by JPY400bn by FY2026, reducing its break-even point from 3.1 vehicle sales annually to 2.5 million units – to achieve a “stable operating margin of 4%.”
Separate reports shows that the automaker’s sales in China fell by 31% to 45,400 in January, while in Japan its volumes were down by 3% to 39,690 units.
