Nissan reports strong April-June results for fiscal year 2021

Nissan Motor Co., Ltd. announced strong financial results for the three months ended June 30, 2021 and has revised upward its full-year profit outlook for fiscal year 2021.

In the first quarter of the fiscal year, consolidated net revenue was 2.008 trillion yen, consolidated operating profit was 75.7 billion yen, and the operating profit margin was 3.8%. The net income¹ in the first quarter was 114.5 billion yen.

Supported by favorable market conditions, profitability improved as Nissan continued to improve the performance in the U.S. market and quality of sales in each market, through the solid implementation of Nissan NEXT transformation plan. Nissan also made effective use of its inventory and conducted strategic production during the first quarter, which minimized the impact of the semiconductor shortage and contributed to operating profit.

First-quarter financial highlights

The following table summarizes Nissan’s financial results for the three months ended June 30, 2021, calculated under the equity accounting method for the group’s China joint venture.

(TSE report basis – China JV equity basis)²

Based on average foreign exchange rates of JPY 109.5/USD and JPY 131.9/EUR for FY21 Q1

On a management pro forma basis, which includes the proportionate consolidation of results from Nissan’s joint venture operation in China, the operating profit was 103.7 billion yen, equivalent to an operating margin of 4.5%. Net income¹ amounted to 114.5 billion yen.

FY2021 outlook

The shortage of semiconductor supply is expected to have a significant impact on Nissan’s sales volume in the second quarter. Nissan expects the issue will continue. However, sales volume will contribute to the operating profit supported by new vehicle launches.

For the full fiscal year, Nissan is forecasting net revenue of 9.75 trillion yen and an operating profit of 150.0 billion yen. A net income¹ of 60.0 billion yen is expected, which is 120.0 billion yen above the previous outlook.

The company has filed the following fiscal year outlook to the Tokyo Stock Exchange. Calculated under the equity accounting method for Nissan’s joint venture in China, the forecasts for the fiscal year ending March 31, 2022, are:

(TSE report basis – China JV equity basis)²

“We have delivered a strong performance in the first three months of our new fiscal year and continued to advance the Nissan NEXT business transformation plan,” said Nissan chief executive officer Makoto Uchida. “For the remainder of the year, we anticipate uncertainties will remain across our operating environment.  We will carefully monitor and manage potential risks as we continue to improve quality of sales and maintain financial discipline. We expect a recovery in the second half supported when several new models will go on sale in core markets. Nissan will firmly pursue our goal of achieving a 2% operating margin in fiscal year 2021³ , which is an important milestone under Nissan NEXT.”