Nissan expects recovery next year

Nissan expects recovery next year

September 12, 2020 0 By autotimesnews

Nissan CEO Makoto Uchida said the company will start to recover next year. Between January and March (the fourth quarter of the current fiscal year), profit will begin to rise. However, it is too late to prevent the end of the fiscal year with the largest annual losses.

However, Uchida believes that Nissan will return to profitability pretty soon: no later than the new fiscal year, which ends March 31, 2022. In the current fiscal year, Nissan’s operating margin (the amount remaining after deducting all expenses) will not exceed 2%.

Nor does the coronavirus pandemic make it easy for Nissan, which presents additional barriers to profit for Japan’s second-largest manufacturer. For example, Makoto Uchida commented, “We expect a recovery by the fourth quarter, but of course we don’t know if a second wave is coming. We see a lot of uncertainty in the future. “

In the first quarter of the current fiscal year ended June 30, Nissan suffered an operating loss of 153.9 billion yen ($ 1.45 billion). The company’s revenue fell by half. Profit decreased by $ 738.1 million due to costs related to the pandemic and restructuring in accordance with the updated business plan Nissan Next.

Nissan is closing factories, revamping production and revising its lineup to cut costs by $ 2.82 billion. The focus is on new products: the all-electric Ariya crossover, Sentra sedan and Rogue crossover.