Nissan Looks to U.S. for 2024 Profits Hike
Challenges in China should be offset by growth in North American markets, automaker says.
Nissan expects sales in North American markets to offset a predicted downturn in the white-heat competition of a vehicle price war in China.
The Japanese automaker says it anticipates beating analyst estimates with a 5.5% rise in operating profit this fiscal year based on higher global sales, reports Reuters. That said, it also warns that intense competition and challenges from inflation will continue.
Nissan expects operating profit to reach 600 billion yen ($3.85 billion) in 2024 starting from April 1. It also predicts inflationary pressures could be offset by foreign exchange moves boosting annual results.
This is despite operating profit for the three months ended March 31 achieving just 90.3 billion yen ($58.1 million), well short of market analyst expectations of 118.2 billion yen ($760.7 million). However, Nissan expects to sell 3.7 million vehicles globally this financial year, a 7.5% hike from the 3.4 million sold last year.
The forecast includes an expected 13.3% rise in North American sales to 1.4 million vehicles while sales in China are thought to increase by just 0.8%, after sales slumped 24% last financial year to just below 800,000.
Nissan also says it will invest in Kasai, a manufacturer of vehicle interior parts such as trims, by acquiring 6 billion yen ($38.6 million) of new issued shares.
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