Nissan, notable for its last year’s incident with a top manager Carlos Ghosn, has reported on an increase in operating profit and revenue in the third quarter of the current fiscal year.
Despite this certainly positive fact, Nissan has reduced its forecasts for this year. This is partly due to high one-time expenses in the amount of $ 83 million. They are associated with the recosting of payments to the former chairman Carlos Ghosn. We recall that he has been dismissed from the position because of his detention in November. The case involved a change in reporting sent to regulators and providing investors with incorrect information about the state of affairs in the company.
Between October and December, the operating profit rose by a quarter to 103 billion yen. The revenue has increased by 6% to the value of 3 trillion yen. The net profit has declined by almost 80% to 70 billion yen.
The company also notes that despite the overall market decline, sales for the last quarter in Japan, China and Thailand have increased. The sales were worse but more qualitative in the States.
The total sales of Nissan for the current fiscal year have fallen by 2% amounting to just over 4 million cars. The increase in sales in the Asian region completely decreased because of the deterioration of the situation in the United States and Europe.
According to Hiroshi Karube, CFO at Nissan, a decrease in sales in European countries is associated with difficulties regarding Brexit.
Over the past 9 months, the share of Nissan in the world car sales has decreased slightly to the level of 5.9%. As for the company’s forecasts, 5.6 million cars will be sold in this fiscal year. Earlier, they predicted the figure of 5.9 million.
The net profit forecast has decreased by 90 billion yen – to 410 billion. The revenue is projected at 11.6 trillion yen.
Hiroto Saikawa, CEO of Nissan, stressed that Renault is a very important asset in the group, and expressed his extreme frustration in connection with the incident with Mr.Ghosn.
During the bidding process, Nissan’s securities have grown by almost 2%, but Renault’s shares have lost about 1%.
Earlier this week, Representatives from the Renault group reported that Carlos Ghosn had left his CEO position. Thierry Bollore has become a new CEO.
The material was prepared with the participation of Katya Gordon,
a leading analyst of the brokerage company CT Trade