Nissan's Q3 Profits Plunge 42.5%, but Full-Year Guidance Maintained
Nissan has reported a significant drop in third-quarter profits, with net profits plunging by 42.5% year over year. Despite this, the company maintains its full-year financial guidance, expecting a net profit rise of 75.8% to 390 billion yen ($2.69 million) in FY 2023.
The automaker's margins were impacted by rising costs, including foreign exchange rates, restructuring costs, and regulatory costs. Logistics issues, particularly at the U.S.-Mexico border, also played a role, leading to lost sales in North America during the quarter. Nissan's CFO Stephen Ma attributed the sales revision to intensifying competition and these logistics problems in major markets.
To mitigate these issues, Nissan has secured additional transport capacity from Mexico to the U.S. and Canada via the Atlantic. This move aims to improve sales in the U.S. market in the fourth quarter. The company has also strengthened its vehicle transport from Mexico to the USA during this period, ensuring logistics problems do not recur. As a result, Nissan has lowered its fiscal year 2023 sales forecast from 3.7 million units to 3.55 million.
Despite the challenges faced in the third quarter, Nissan remains optimistic about its full-year financial outlook. The company is taking proactive measures to address logistics issues and intensifying competition, with a focus on improving sales in the U.S. market in the coming quarter.
Read also:
- U.S. CBP's Operation Plaza Spike Boosts Fentanyl Seizures Along Arizona-Mexico Border
- Tesla's EV Market Share Plummets in Europe, US Competition Intensifies
- Catastrophe at a U.S. Steel facility in Pennsylvania results in the loss of two lives. crucial details unveiled
- Auto Industry Updates: Geotab, C2A, Deloitte, NOVOSENSE, Soracom, and Panasonic in Focus
