Nissan reports loss, 10% vehicle sales decline in Q1
Consolidated revenues plunged by almost 10% year-on-year to JPY 2,706.9 billion in the first quarter of FY25, with global sales of 707,000 vehicles – down 10% compared with 787,000 units a year earlier. This resulted in an operating loss of JPY 79.1 billion, compared with a profit of JPY 1 billion a year earlier, resulting in a negative operating margin of -2.9%. The company said improvements in product mix and reductions in fixed costs helped mitigate losses, after previously forecasting a JPY 200 billion operating loss for the quarter.
The automaker reported a net loss of JPY 115.8 billion, compared with a net profit of JPY 28.6 billion a year earlier. It calculated that its total liquidity was JPY 3.1 trillion at the end of June, with an additional JPY 1.8 trillion available in unused credit lines. The company confirmed that the key headwinds it faced in the quarter included weaker sales volumes, adverse exchange rates, and the impact of US import tariffs.
Nissan kept its full fiscal revenue forecast unchanged at JPY 12,500 billion, but did not offer a full-year earnings forecast due to the 'difficulty in forecasting the business environment surrounding the company at this time,' adding that the full-year 'outlook for operating profit, net income, and auto free cash flow for the fiscal year remains undetermined.'
The company did provide a financial forecast for the second quarter of FY25, including expected consolidated net revenues of JPY 2,800 billion, an operating loss of JPY 100 billion, and a negative automotive free cash flow of JPY 350 billion.
Nissan president and CEO, Ivan Espinosa, said in a statement: 'These results serve as a reminder of the urgency behind our Re:Nissan recovery plan. Over the past quarter, we've taken decisive first steps—cutting costs, redefining our product and market strategies, and strengthening key partnerships. We must now go further and faster to achieve profitability. Everyone at Nissan is united in delivering a recovery that will ensure a sustainable and profitable future.'
In the last two months, Nissan announced plans to close its Oppama assembly plant in Japan and the CIVAC plant in Mexico, with more closures to be announced in the coming months. The automaker is looking to reduce its global production capacity from 3.5 million to 2.5 million vehicles per year under its Re: Nissan restructuring plan, while reducing the number of assembly plants globally from 17 to 10.
"Nissan reports loss, 10% vehicle sales decline in Q1" was originally created and published by Just Auto, a GlobalData owned brand.
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