Nissan Projects 1st Annual Net Profit in 3 Years

Yokohama, May 13 (Jiji Press)–Nissan Motor Co. said Wednesday that it expects to return to profitability in fiscal 2026 after two years of substantial losses, thanks to its cost-cutting efforts. For the year ending in March 2027, Nissan projected a consolidated net profit of 20 billion yen after booking a net loss of 533 billion yen for the previous year due to costs related to restructuring measures, including factory closures and job reductions. The Japanese automaker now plans to release new models. However, its turnaround is still uncertain amid rising fuel and material prices caused by heightened tensions in the Middle East. Higher U.S. tariffs imposed by the administration of President Donald Trump will also continue to weigh on the company. For the current business year, Nissan predicted sales of 13 trillion yen, up 8.3 pct from the previous year, and an operating profit of 200 billion yen, up about 3.4-fold. Global vehicle sales are forecast to rise 4.7 pct to 3.3 million units, reflecting sales growth in all major markets–Japan, China, North America and Europe. Meanwhile, Nissan estimated that stagnant exports and higher raw material prices amid the Middle East situation could increase its costs by 15 billion yen in the first half of fiscal 2026. Still, the company also anticipates positive effects from reducing production, logistics, procurement and other costs. For fiscal 2025, which ended in March, Nissan logged the second consecutive massive annual net loss. Sales decreased 4.9 pct to 12,007,8 billion yen, and operating profit dropped 16.9 pct to 58 billion yen. Higher U.S. tariffs reduced operating profit by 286 billion yen. Nissan has been struggling with sluggish sales both in Japan and overseas. In May last year, it announced drastic restructuring measures. It decided to close seven factories, including its flagship Oppama plant in the city of Yokosuka, Kanagawa Prefecture. At a press conference, Nissan President and CEO Ivan Espinosa said that cost reductions are progressing faster than planned. END [Copyright The Jiji Press, Ltd.]