Nissan Motor promised to build on a better second quarter despite longer-term forecasts signaling persistent challenges for the carmaker’s efforts to turn around its worst financial crisis in decades.
Operating income in the quarter ended Sept. 30 was ¥52 billion ($338 million), the Japanese company said.
But Nissan withheld a forecast for full-year net income and said it will forgo an interim dividend for the fiscal year ending March 2026.
Operating losses widened to ¥177 billion for the first half, Chief Financial Officer Jeremie Papin told reporters.
Retail sales during the period fell almost 18% in China and 17% in Japan, outweighing the 2% increase in the US, he said.
With investors bracing for a downbeat report following Nissan’s surprise forecast last week of a ¥275 billion annual operating loss — an outlook it reiterated Thursday — Papin struck an upbeat tone for the coming months.
Sales Growth
The company expects a strong rebound in sales volumes and “we’re confident the next half will deliver growth,” he said.
The carmaker kept its full-year sales outlook at 3.25 million units.
But Nissan’s second-half view may prove too optimistic, according to Bloomberg Intelligence senior auto analyst Tatsuo Yoshida.
“We see limited room for gains in volume, mix, or cost control, making it uncertain whether the company can deliver the improvement it assumes,” he said.
“The full-year retail sales target calls for a 1% increase year over year and a 20% rise from the first half — an ambitious goal with downside risk.”
Nissan’s full-year outlook is also clouded by the difficulties in calculating the cost of a restructuring that will see it cut 20,000 jobs, shut factories and reduce production.
US President Donald Trump’s tariffs on imported cars and parts has also weighed heavily on the carmaker’s results.
The company is pursuing asset sales, including selling its global headquarters in Yokohama to a group sponsored by Taiwanese autoparts maker Minth Group for ¥97 billion.
That will see it book a ¥73.9 billion gain — underscoring the long road ahead for Nissan’s efforts to get back in the black.
The Japanese manufacturer’s struggles have been exacerbated by revolving-door leadership and a weak product lineup.
Chief Executive Officer Ivan Espinosa, who is helming Nissan’s turnaround, said it will unveil nine new models through the fiscal year ending March 2028.
He reiterated the company’s pledge to achieve positive operating profit and free cash flow by the fiscal year ending March 2027.
“We are committed to deliver what we said,” Espinosa said.
Executives also warned that Nissan hasn’t escaped the fallout of China’s restrictions on exports of Nexperia chips, which caused a shortage that’s seen some automakers halt or adjust production.
The carmaker sees a ¥25 billion risk, though the situation is fluid, Papin said.
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