Nissan returns to operating profit in Q2

Nissan booked 51.5 billion yen (S$437.4 million) in operating profit for July-September

Nissan Motor swung back to an operating profit in the second quarter on Thursday (Nov 6) reporting its best quarterly result in more than a year due to efforts to reduce fixed costs as part of its turnaround plan and stronger sales in North America.

Nissan booked 51.5 billion yen (S$437.4 million) in operating profit for July-September, up 61 per cent from 31.9 billion yen a year earlier and beating a forecast for an average 70.9 billion yen loss from five analysts polled by LSEG.

The result marked its best single-quarter finish since a US90.3 billion profit in the final quarter of fiscal 2023.

The result comes as the automaker presses ahead with a sweeping turnaround plan that includes reducing its global manufacturing plants to 10 sites from 17 and laying off 15 per cent of its workforce.

The company maintained a forecast released last week for a 275 billion yen annual operating loss in the year through March 2026 due to the hit from US tariffs and supply chain risks, including from problems with the supply of Nexperia chips.

The company is scaling back production of its top-selling Rogue sport utility vehicle in Japan from next week due to a short supply of chips from Dutch firm Nexperia, a person familiar with the matter told Reuters on Wednesday.

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Nissan said earlier on Thursday it has concluded a 97 billion yen deal to sell and lease back its global headquarters in Yokohama. REUTERS