Nissan's Quarterly Operating Profit Falls 44%

• Operating profit fell to 17.5 billion yen from 31.1 billion yen in the same quarter last year, representing a 44% year-over-year decline
• Results substantially exceeded analyst forecasts, which predicted an average loss of 81 billion yen according to an LSEG survey of six analysts
• The profit decline reflects ongoing challenges from heavy competition in major markets such as the U.S. and China

Summary

Nissan Motor Reports Sharp Profit Decline Amid Market Pressures

Nissan Motor announced a significant 44% decline in third-quarter operating profit, falling to 17.5 billion yen ($114.37 million) on February 12. The Japanese automaker attributed the poor performance to intense competition in key markets, particularly the United States and China.

Key Financial Data:

• Q3 operating profit: 17.5 billion yen ($114.37 million)
• Year-over-year decline: 44%
• Prior year Q3 profit: 31.1 billion yen
• Analyst expectations: Average estimate predicted an 81 billion yen loss (LSEG survey of six analysts)

Performance Context:

Despite the substantial profit drop, Nissan's results significantly exceeded analyst forecasts, which had predicted a loss of 81 billion yen. However, the company remains under pressure as a "struggling Japanese automaker" facing competitive headwinds in two of the world's largest automotive markets.

Market Implications:

The results highlight ongoing challenges in the global automotive sector, particularly for traditional manufacturers competing against aggressive pricing and innovation in the U.S. and Chinese markets. The 44% profit decline underscores Nissan's vulnerability to market share erosion in these critical regions.

The company's struggle reflects broader trends affecting legacy automakers as they navigate the transition to electric vehicles, changing consumer preferences, and intensified competition from both established rivals and new entrants, particularly Chinese EV manufacturers.

Exchange Rate: 1 USD = 153.01 yen