By on February 13, 2020

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]

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13 Comments on “Dismal Earnings Reports Lands, Nissan Cuts Profit Forecast Again...”

  • avatar

    I don’t see what the big deal is. Shut the sucker down while there’s still positive assets. Sell its carcass to Denso, Fuji, Mahindra or someone, while it’s still somewhat functioning, a dealer network, etc.

    • 0 avatar

      They probably should have done the same thing to GM and Chrysler.

      • 0 avatar

        What did they do? Built their trucks in Mexico? GM/Chrysler at least had trucks that providing obscene profits through the whole SNAFU/FUBAR, and *almost* worth saving.

        It would take several billions to save Nissan, and even then it’s risky. Nissan is like an airplane spiraling straight down, too close to the ground to save.

        • 0 avatar

          I agree that they are making bank at present on trucks but they weren’t in 2008 and it took MANY, MANY billions of taxpayer dollars to prop them up and help them out of bankruptcy (incidentally, all of which has not been repaid despite what fanboys and employees would like you to believe).

          • 0 avatar

            All cars/trucks saw a big slowdown, but Big Three pickups were still the number one, two and three biggest earners in the world. Before, during and since.

            The point is those pickups had “huge potential”, along with the SUV sisters. If they were their own companies, they wouldn’t have needed any kind of bailing out, and likely could’ve bought out the Japanese Big 3.

            Ford also sucked up the “freebies” given out evenly, except Ford never took out a “bailout” and didn’t need one to stay afloat.

            GM never reimbursed what tax payer lost. US stock in GM was sold at an 11 billion dollar loss. That’s what GM calls “Paid in Full”.

      • 0 avatar

        Putting 400,000 people out of work in the middle of a depression probably seems like a great idea – keep-em coming!

        • 0 avatar

          it was not near a “depression.” It was an otherwise very minor economic downturn made into a false crisis caused by government policy.

          Nonetheless, some sort of “bail out” was justified – but not the illegal one that was done. The taxpayers and the bondholders should have gotten all GM/Chrysler profits from 2010-2016 to be repaid. The gov. should have done a loan via the 80s Chrysler emergency loan. the “Packaged bankruptcy” was wholly illegal.

          • 0 avatar

            “The gov. should have done a loan via the 80s Chrysler emergency loan. the “Packaged bankruptcy” was wholly illegal.”

            because some whack-job on the internet told you so. take your revisionist crap elsewhere.

          • 0 avatar

            “It was an otherwise very minor economic downturn”

            Minor? I remember world’s financial system was on the brink of collapse and there was already building up widespread panic. If no FDIC insurance there would be run on banks like in 30s. You know – depression is like a wildfire – if burns out excesses and dead wood. That is what environmentalists clamor for – natural way of cleaning things up and starting over anew and healthy. That’s what you want? It will be cruel though, do not think you will be spared and everyone else will pay the price. You will pay price too.

        • 0 avatar
          Art Vandelay

          So it is a numbers game? How big does my company have to be for my job to be backed by the “full faith and credit” of the US Government because when I worked for a company that went under my kiester was out on the street and nobody from the government kept us employed.

  • avatar

    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).

  • avatar
    schmitt trigger

    Japanese Leyland Motors?

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