Nissan hikes net profit forecast again

TOKYO (AFP/APP): Nissan on Tuesday hiked its annual net profit forecast again on strong quarterly results, aiming to weather the global chip shortage as it shifts focus to electric vehicles.
The Japanese car giant now expects yearly net profit to March 2022 of 205 billion yen ($1.77 billion), having already tripled its annual profit outlook in November to 180 billion yen.
Its optimistic outlook comes despite a shortage of semiconductors that has battered automakers worldwide, and which analysts warn may take longer than expected to resolve.
It also follows a series of trials for Nissan, which has faced problems in recent years including weak demand and the fallout from the arrest of former boss Carlos Ghosn.
“Although the sales volume forecast for fiscal 2021 remains unchanged at 3.8 million units, the severe semiconductor shortage and the increase of Covid-19 infections due to the spread of the Omicron strain are affecting plant operations,” the company said in a statement.
“Despite these challenges, Nissan has revised upward its full-year outlook due to further improvement in performance due to the enhancement of quality of sales and cost optimisation, ongoing depreciation of the yen and a review of the impact of rising raw material prices.”
Nissan reported net profit of 32.7 billion yen in October-December 2021, compared with a net loss of 37.8 billion yen in the same period the previous year, when virus lockdowns battered the auto market.
Revenue in the third quarter was slightly down at 2.2 trillion yen, however. The company’s consolidated nine-month results saw year-on-year increases in revenue and net profit.