Nissan Reports Q2 Profit Increase Amidst Ongoing Restructuring, Sales Concerns
Nissan Motors announced a 61% increase in operating profit for the July-September period (second quarter) reaching 51.5 billion yen. This improvement,however,occurs alongside continued challenges in sales and an overall cautious outlook for the company’s recovery.
The profit increase was driven by 63.3 billion yen in cost reductions across purchasing, research and development, production, and logistics, alongside one-time gains.Despite headwinds from unfavorable foreign exchange rates, inflation, and U.S. tariffs, Nissan managed to exceed market expectations, which had predicted a 78.8 billion yen deficit for the quarter.
However, Nissan cautioned against over-optimism. The company noted that some planned R&D projects were delayed to the second half of the fiscal year, contributing to the improved first-half results. Nissan is currently forecasting an operating deficit of 275 billion yen for the full fiscal year ending March 2026.
Sales figures paint a concerning picture. While Nissan maintains its global sales forecast of 3.25 million units for the fiscal year,new car sales in Japan plummeted 21% year-on-year during the second quarter,with negative sales trends observed in all regions except North America.
The company also reported a net loss of 106.2 billion yen for the second quarter, a larger deficit than the same period last year, and has not yet persistent its full-year net income forecast.
Under President Ivan Espinosa, who assumed office in April, Nissan is aggressively restructuring. This includes halting production at its Oppama Plant in Kanagawa Prefecture and selling its Yokohama City headquarters building. As of September, the company’s automotive buisness liquidity stood at 3.6 trillion yen, comprised of 2.2 trillion yen in cash and cash equivalents, with an additional 2.3 trillion yen available through unused loan facilities.
Bloomberg Intelligence analyst tatsuo Yoshida noted the Q2 results aligned with prior forecasts and expressed skepticism about a swift turnaround, citing concerns about sales and cost control.
President Espinosa acknowledged the challenges facing Nissan but expressed confidence in the company’s progress towards recovery, emphasizing the importance of consistent efforts and a disciplined approach, including the planned introduction of new vehicles in the second half of the fiscal year.
