Disappointing Q3 results for Nissan
Nissan has announced disappointing results for the third quarter of 2013. The Japanese car maker suffered year-on-year losses in the third quarter and barely thrived from its first nine months’ sales compared to the previous fiscal year.
Here is a snapshot of third-quarter results (October-December, 2012)
- Consolidated net income after taxes: 54.1 billion yen (US$670 million, euro 510 million); year-on-year decline of 34.6%.
- Net Revenue: 2.2084 trillion yen (US$27.23 billion, euro 21.01 billion); year-on-year decline of 5.3%
- Operating Profit: 62.1 billion yen (US$770 million, euro 590 million); decline of 47.4% compared to previous year
- Operating Profit Margin: 2.8%
- Ordinary profit: 89.0 billion yen (US$1.10 billion, euro 850 million)
- Number of vehicles sold: 1.159 million worldwide, year-over-year decline of 3.8%
Carlos Ghosn, President and CEO of Nissan, accepted that the numbers from the financial report did not meet the company’s expectations and discussed reasons for the disappointing results.
This was primarily the result of difficult operating conditions in Europe for the entire auto industry, in China for Japanese automakers, and in the U.S. for Nissan”. Carlos Ghosn, President and CEO of Nissan.
A little bit of relief comes to Nissan from its sales report of the first nine months of business (April to December, 2012)
- Consolidated Net Revenue: 6.7552 trillion yen (US$84.44 billion, euro 66.23 billion)
- Operating Profit: 349.2 billion yen (US$4.37 billion, euro 3.42 billion)
- Operating Margin: 5.2%
- Ordinary Profit: 364.6 billion yen (US$4.56 billion, euro 3.57 billion)
- Net Income: 232.4 billion yen (US$2.91 billion, euro 2.28 billion)
- Number of vehicles sold: 3.635 million; 6.0% year-on-year increase.
Despite poor performance in the third quarter, Nissan’s predictions for its full fiscal year performance remains unchanged. The car maker has made swift organisational changes to help stimulate business performance and intends to revamp its product lineup with important vehicle launches in the near future.