Nissan records surprise profit

Nissan has posted a surprise profit in Q1 2021 and boosted its alliance partner Renault as a result.

The profit is attributed to recovering global demand, aided by a weaker Japanese yen.

Nissan forecast a return to annual profit for the first time in three years, with operating profit for the fiscal year to March around 150 billion yen (about NZ$2 billion), contributing 173 million euros in Q2 to Renault Group’s  earnings, Bloomberg reports.

For the April-June quarter, Nissan reported a nearly 76 billion yen operating profit, instead of a predicted loss, which compares to its 153.9 billion yen loss a year ago.

And its operating profit margin was 3.8% compared to minus 13.1% a year ago too.

Nissan’s newly released models are reportedly doing well, including its electrified lines.

Although Nissan expected to drop about 500,000 production units this financial year due to the global semiconductor shortage, it aims to recover more than half of that.

The microchip shortage is forecast to be felt the most by Nissan in the present quarter before improving, while increasing prices for raw materials is also predicted to have an impact.

Consolidated net revenue was 2.01 trillion yen, better than the prior year’s 1.17 trillion yen, while Nissan revised upward its full-year profit outlook for fiscal year 2021 – now expecting net income of 60 billion yen, reversing its previous loss estimate of 60 billion yen.

Nissan is now forecasting net revenue of 9.75 trillion yen, higher than a previous estimate of 9.10 trillion yen, and an operating profit of 150 billion yen, compared to a previously expected breakeven.

In Japan, Nissan Motor shares have lifted on the back of the latest result.