Dismal Earnings Reports Lands, Nissan Cuts Profit Forecast Again

Steph Willems
by Steph Willems

Nissan has handed in its third-quarter 2019 earnings report, and the grades are bad. Missing analyst expectations, the automaker’s operating profit fell 83 percent in the first 9 months of the fiscal year, with revenues down 12.5 percent. That leaves Nissan with an operating margin of 0.7 percent — down three percentage points from this time last year.

Operating profit in Q3 (October-December) was $210 million.

As the automaker attempts to triage its way out of a financial hole that deepened rapidly in early 2019, Nissan has again pared back its full-year profit forecast.

The company now expects to manage $775 million in profit in fiscal year 2019. Since the outset of the fiscal year last April, that forecast shrank from $2.09 billion to $1.4 billion, then to this.

“Despite having made steady progress in its business transformation and profit recovery measures, due to weak performance and a slowdown in total industry volume the company has revised its full-year guidance,” the automaker sail in the report.

“For the full fiscal year, the company now expects to sell 5.05 million vehicles, a decrease of 3.6% from the previous forecast in November.”

Nissan’s global sales shrunk 8.1 percent in the first nine months of the fiscal year, most dramatically in North America. In China, currently hit hard by a virus outbreak that’s idled plants and restricted consumer movement, the automaker saw just a 0.6-percent sales decrease. The final quarter of the year could look very different in that market.

Citing “the need for investment in future technologies to strengthen the company’s competitiveness,” Nissan said it would not distribute a year-end dividend.

In Beirut, a man who once devoted his life to nurturing Nissan’s financial health is likely all smiles this morning.

[Image: rmcarvalhobsb/Shutterstock]

Steph Willems
Steph Willems

More by Steph Willems

Comments
Join the conversation
3 of 13 comments
  • Jfk-usaf Jfk-usaf on Feb 13, 2020

    Get a competitive powerplant into the Armada and ditch your awfully executed CVTs for transmissions with gears (6 or more). Pull a "Honda Civic" and move your model refresh schedule to the left. Expand your SUV lineup by bringing over some of the models that you sell elsewhere.... Outside of the box idea: Sell a luxed up Navara over here in addition to the Frontier. Grab as many of the Mercedes X parts that you can now that its cancelled and sell this as a luxury mid size pickup. Also, keep selling the legacy Frontier as a fleet vehicle like the big guys do with their legacy models. You already know that the new engine fits. Redo the Infinity M35 in the spirit of the Audi S7 (hatch, top quality interior).

    • Don1967 Don1967 on Feb 13, 2020

      Technically speaking, to "pull a Honda Civic" is to add a CVT. Not ditch it.

  • Schmitt trigger Schmitt trigger on Feb 14, 2020

    Japanese Leyland Motors?

  • Kwik_Shift_Pro4X Defender looks way better than the Bronco in both 2-door and 4-door.
  • ToolGuy I found this particular episode to be incredibly offensive.I am shocked that eBay Motors is supporting this kind of language and attitudes in 2024.I will certainly keep this in mind next time I am choosing where to buy auto parts (I buy a LOT of auto parts).
  • SaulTigh When I was young in the late 80's one of my friends had the "cool dad." You know the guy, first to buy a Betamax and a C-band satellite dish. Couple of stand up arcade games in the den. Bought my friend an Atari 2600 as soon as they came out. He had two of these crap heaps. One that only ran half the time and one for parts in the yard. My middle school brain though he was the most awesome dad ever, buying us pizza and letting us watch R rated movies recorded on free HBO weekend. At the time I though he was much better than my boring father.Now with adult hindsight, I now know he was "dad who should have taken better care of his family" and not had so many toys.
  • Dave Has to be Indy 500. Many more leaders and front passes than NASCAR, and Monaco is unwatchable with the inability to pass on that circuit.
  • Jeff How did the discussion get from an article about a 56 billion dollar pay package for Elon Musk to a proposal to charge a per mile tax on EVs in California or paying increase registration on vehicles to make up for lost gas tax revenue? I thought such a discussion would better fit Matt's Gas Wars series.
Next