Nissan logs 1st April-Sept net loss in 5 years
Nissan Motor Co. said Thursday that it fell into the red in April-September for the first time in five years, weighed down by higher US tariffs imposed by the administration of President Donald Trump, as well as lacklustre sales in Japan and the United States.
For the first half of fiscal 2025, the struggling Japanese automaker reported a consolidated net loss of 221,921 million yen, against a profit of 19,223 million yen a year earlier.
Nissan also booked an operating loss of 27,653 million yen, against a profit of 32,908 million yen, on sales of 5,578.6 billion yen, down 6.8 % year on year. The company said that the US tariffs pushed down its operating balance by 149.7 billion yen.
At a press conference on the day, Nissan President and CEO Ivan Espinosa said that the company is "firmly on the path to recovery," adding that "the foundation for future success is in place," referring to the launch of new models, including the Leaf electric vehicle, as well as an improving cost structure.
During the six-month period, the automaker sold 1.48 million vehicles globally, down 7.3 %. Its vehicle sales grew 2 pct in the North American market, but logged double-digit percentage falls in Japan and China. Sales in Europe fell nearly 8 %.
For the full year through next March, the company kept its sales estimate unchanged at 11.7 trillion yen, down 7.4 % from the fiscal 2024 result, and maintained the operating loss forecast at 275 billion yen. It did not release a forecast for the bottom line.
As the company estimates the full-year impact of the US tariffs at 275 billion yen, Espinosa said, "We remain on track for operating profit breakeven, excluding the tariff impact."
Nissan has decided to sell its headquarters building in Yokohama, south of Tokyo, and will book an extraordinary income of 73.9 billion yen for fiscal 2025.
The company will continue to use the building by leasing it back. "This ensures Nissan's continued presence and commitment to Yokohama while ensuring no impact on employees or operations," the Nissan chief said.
Meanwhile, Nissan estimates that supply chain turmoil, such as a stalled supply from a Chinese-affiliated semiconductor maker in the Netherlands, will dent its full-year operating balance by 25 billion yen.
[Copyright The Jiji Press, Ltd.]
