Nissan: Profits declined in North America and emerging markets
Selling and warranty expenditures soared in FY2013 3Q YTD
2014/03/05
- Summary
- Main factors for downward revision and Nissan's corrective actions
- Nissan's global sales reached all-time high but low consolidated results
- A 9.0% decline in sales volume in emerging markets
- Increase in selling expenses mainly in U.S.
- Increase in warranty & recall expenditures
- Management makeover to enhance operational efficiency
- Sales Forecast by LMC Automotive: Nissan sales in 54 countries to be 5.4 million units in 2017
Summary
 The Nissan Sport Sedan Concept at the 2014 Detroit Auto Show |
Nissan Motor Company (Nissan) revised its full-year goals downward when it announced its financial results for the first half of the fiscal year ending March 2014 (FY2013). The global sales target were downgraded by 100,000 units, consolidated net sales by JPY 180 billion, and consolidated operating profit by JPY 120 billion. Nissan seems left behind as many other Japanese automakers reported all-time highs or over 40% increase in operating profit for the period from April through December 2013. Nissan recognizes the present stagnation of its earnings to be a passing point caused by immediate volume expansion conducted as a part of the mid-term plan. The company will analyze its operations in detail by closely following the PDCA cycle and strive to achieve its mid-term target. For reference purpose, LMC Automotive's forecasts of Nissan's vehicle sales in 54 countries are added at the end of this report.
Related report: Nissan mulls new plant in North America by 2017(posted in July 2013)
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