Nissan’s net profit has fallen to a minimum in the last ten years

Nissan’s net profit has fallen to a minimum in the last ten years

May 16, 2019 0 By autotimesnews

Nissan’s net profit fell by more than half: in 2018, the company earned about $ 2.9 billion, while 2017 brought the manufacturer $ 6.8 billion. The decline was 57.3%. Such data is indicated in the financial report of the company.

The declared net profit was at a minimum in the last ten years. At the same time, total revenue in 2018 declined only by 3.2%, to $ 105.6 billion.

The Nissan report states that “the company faced an unfavorable global business climate and incurred short-term costs due to measures to improve sales in the US, as well as in connection with the campaign to extend the warranty on certain vehicles.”

Another negative factor for the manufacturer was the decline in demand for Nissans: last year they managed to sell 5.5 million cars, which is 4.4% less than the result of 2017. At the same time, the company is doing well in its home country: shipments increased by 2.1% to 596 thousand cars. The brand marks good demand for the Compact Note and the Serena minivan.

The worst situation in Europe, where sales have fallen by 17.8%, to 536 thousand units. Against this background, a decline of 2.6% (to 107 thousand cars) in Russia looks like a stable result.

This annual financial report was the first after the arrest of the former head of the company, Carlos Gona. Recall that he was detained in November 2018 after Japanese authorities accused him of understating income and abusing his position, as a result of which he manipulated finances and declared personal losses as corporate. Since November, the Japanese Prosecutor’s Office has repeatedly extended the arrest of Carlos Gona and brought new charges. Initially, he was suspected of underestimating income from 2010 to 2014, then the authorities accused him of a similar crime for the period from 2015 to 2017. Also in the course of the investigation was added the charge of abuse of trust.