9 Nov 2021
Profit Outlook Increased as Nissan Sales Rebound from Pandemic
The Index Today
On Tuesday, Nissan Motor Co increased its operating profit outlook by 20% for its full-year. The increase came after sales showed signs of rebounding amid supply tight supplies which further led to lower incentive programs and higher profit margins.
The automobile company had to decrease its production due to the global shortage of semiconductors. However, major countries such as China and the U.S saw a higher demand for its cars this year. Nissan has raised its profit outlook from 150 billion yen to 180 billion which is based on new forecasts provided by Refinitiv data.
On the other hand, Honda Motor Co had to lower its profit outlook for the year by 15% as the chip shortage negatively impacted production. Toyota Motor Corp also brought down its sales targets for the same reason. Many automobile manufacturing companies are facing production issues amid the semiconductor crisis.
The second quarter of profits posted by Nissan reflect 62.8 billion yen up until September with a loss of 4.8 billion for last year. Refinitiv data pointed towards the fact that the new results were better than previous losses based on estimates from analysts.