Dismal Earnings Reports Lands, Nissan Cuts Profit Forecast Again

Steph Willems
by Steph Willems
dismal earnings reports lands nissan cuts profit forecast again

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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  • 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?

  • Jeff S I haven't seen one of these since the 90s. Good find.
  • William Piper Ditch the Renault-Nissan-Mitsubishi Alliance for starters….Mitzu has probably benefited less than the other two partners and it has shackled any brand creativity moving forward.
  • Tassos I knew a woman in the area, a journalist (at least she claimed to be a reporter of some kind) who owned one of these tiny pickups with a manual transmission. SHe was only 40 at the time, but she must have been hard of hearing, because she would routinely forget to shift and we would go at fairly high speeds in very low gear, which made a huge racket, which did not seem to bother her (hence my deafness hypothesis). Either that, or she was a lousy driver. Oh well, another very forgettable, silly car from the 80s (and if my first and LAST VW, a 1975 Dasher wagon, was any indication, a very unreliable one too!)
  • Tassos Now as for the Z specifically, Car and Driver had a comparison test of the new Z400, a car that looks good on paper, with plenty of HP etc, but, despite the fact that the cars that win in those tests are usually brand new models that are more up to date than their aging rivals, the Z finished DEAD LAST in the test, to my ovbious surprise.
  • Arthur Dailey Sorry but compare that spartan interior to the Marks that Corey is writing about. 'A cigarette lighter'. Every Mark had 4 cigarette lighters and ashtrays. And these came standard with 'a 3.4-liter, 182-horsepower straight-six in the engine compartment and a five-speed manual transmission'. Those do not tick off many of the luxury boxes aspired to by 'the greatest generation'.Not sure about the 7 series but one of My Old Man's associates showed up once with a brand new 5 series circa 1977 and they gave him such a bad time that he traded it for a Fleetwood within a week.