Japanese automaker Nissan reduces red ink, vows to return to profit for full year

Tokyo: Japanese automaker Nissan trimmed its losses over the first half of the fiscal year, compared to the previous year, and on Wednesday reaffirmed its promise to turn profitable for the full year.

Losses at Nissan Motor Co, based in the port city of Yokohama, for the April-September period totalled 39.7 billion yen ($250 million), smaller than the 221.9 billion yen red ink for the same period last year.

Nissan's six-month sales rose 8.8% to 6.07 trillion yen, helped by a favourable exchange rate and pricing.


US and Japanese markets did well as far as vehicle sales, while the situation remained challenging in China, where competition remains fierce. The unrest in the Middle East, which has raised the price of some raw materials, while blocking shipments, continues to hurt Nissan, as with other Japanese companies.

Nissan stuck to its earlier projection to return to profit for the fiscal year through March 2027, at a net profit of 20 billion yen. That marks a recovery from the last two fiscal years, when Nissan has been in the red.

"The second half offers real opportunities to make progress," said Chief Executive Ivan Espinosa, stressing that model launches will build on the recovery "momentum, market by market."

"The next step is to build on that foundation," he told reporters.

Nissan's new business plan is set to be announced in February next year.

Nissan, which makes the Rogue sport utility vehicle, Z sports car and Infiniti luxury models, is allied with Renault SA of France and Mitsubishi Motors Corp of Japan. It also has a partnership with Japanese rival Honda Motor Co., sharing technology and some parts.

Nissan's results were hurt by an earthquake that struck Kumamoto, southwestern Japan, earlier this year. Nissan's plant there lost days of production, but no employee was injured.

Nissan's stocks, which have declined over the past year, slipped 1.5 per cent in Wednesday trading, ahead of the earnings announcement.