Yokohama, Nov. 11 (Jiji Press)–Nissan Motor Co. on Wednesday reported a consolidated net loss of 39.7 billion yen for April-September, posting such a loss for the second straight year on a fiscal first-half basis. Still, the figure improved from a loss of 221.9 billion yen a year earlier. Nissan posted an operating profit of 80 billion yen for the six-month period, compared with a loss of 27.6 billion yen, on sales of 6,071.9 billion yen, up 8.8 pct. The company returned to operating profitability for the first time in two years for the period, thanks to cost-cutting efforts. However, rising interest rates pushed up interest expenses, leaving it in the red on a net basis. For the full year through next March, the company maintained its net profit forecast at 20 billion yen, but lowered its global vehicle sales estimate from 3.15 million units to between 2.97 million and 3 million units, in light of the sluggish sales in China. In the first half, Nissan’s global vehicle sales fell 4.7 pct to 1.41 million units, as growth in North America and Japan was offset by a 15 pct drop in China. “In the United States and Japan, renewed products and sharper retail execution are building momentum,” Nissan President and CEO Ivan Espinosa told a press conference. The company aims to regain sales momentum in the Chinese market by expanding its model lineup. It plans to unveil a new business plan next February. In April-September, four of Japan’s seven major automakers reported double-digit net profit growth, according to their latest earnings reports released by Wednesday. The four are Toyota Motor Corp., Honda Motor Co., Suzuki Motor Corp. and Subaru Corp. Mazda Motor Corp. posted a net profit for the first time in two years, while Mitsubishi Motors Corp. saw its net loss shrink. All seven automakers posted revenue growth. Although a weaker yen and a lighter U.S. tariff burden helped the automakers improve their earnings, their business outlook remains highly uncertain amid sluggish sales in China and rising material costs stemming from worsening tensions in the Middle East. While automakers enjoyed strong vehicle sales in Japan and robust hybrid vehicle sales in the United States, Toyota, Honda and Nissan suffered sharp declines in vehicle sales in China. Japanese automakers struggled in the Chinese market due to intense competition with local rivals and a rapid shift to electric vehicles spurred by high fuel costs. Subaru Managing Executive Officer Shinsuke Toda said that rising raw material costs are having a broad impact, affecting not only petroleum-related products but also steel, aluminum, labor costs at parts manufacturers and semiconductors. All seven companies are bracing for higher costs to begin to have a full impact on their earnings in the second half of the fiscal year. END [Copyright The Jiji Press, Ltd.]
