Nissan profit soars to1.6 billion yen for three-month period ending June 30, 2019

Auto maker, Nissan motor has announced an operating profit of 1.6 billion yen on net revenues of 2.37 trillion yen, equivalent to an operating margin of 0.1 per cent for the financial results for the three-month period ending June 30, 2019.

The auto’s first quarter net income1 fell by 94.5 per cent to 6.4 billion yen.

Global total industry volume remained weak during the quarter, and Nissan’s unit sales decreased as the company continued its efforts to normalize sales. Profitability was negatively impacted by the decrease in revenues and external factors such as raw material costs, exchange rate fluctuations and investments to meet regulatory standards.

On a management pro forma basis, which includes the proportionate consolidation of results from Nissan’s joint venture operation in China, operating profit was 40.1 billion yen, equivalent to an operating margin of 1.5per cent, and net income1 amounted to 6.4 billion yen.

In the first quarter of fiscal year 2019, global total industry volume decreased 6.8per cent to 22.5 million units, while Nissan’s global unit sales decreased 6.0percent to 1.23 million units.

In Japan, Nissan’s sales decreased 2.6% to 126,000 units. The all-new Nissan Dayz was well received when it went on sale in March, with demand remaining very strong throughout the quarter.

In China, where Nissan reports figures on a calendar-year basis, unit sales increased 2.3% to 344,000 units, representing a market share of 5.7%, a 0.7 percentage point increase from the comparable period in the prior year. This was driven by strong demand for models including the Sylphy sedan and Qashqai and X-Trail crossovers, as well as Venucia-brand models such as the T60 crossover.

In the U.S., Nissan’s sales totalled 351,000 units, equivalent to a market share of 7.9%.

Nissan sales in Europe, including Russia, fell by 16.3% to 135,000 units. Market share in Europe was 2.5%. Unit sales in Russia decreased 21.7% to 18,000 units, equivalent to a market share of 4.1%.

In other markets, including Asia and Oceania, Latin America, the Middle East and Africa, Nissan’s sales decreased 13.1% to 174,000 units.

The company said it was implementing strategic reforms in order to build an operational base that will ensure consistent and sustainable profitability over the medium term.