YOKOHAMA (dpa-AFX) - Nissan Motor Co., Ltd. (NSANF.PK, NSANY.PK) reported that, on a TSE report basis - China JV equity basis, first half net income was 19.2 billion yen compared to 296.2 billion yen, prior year. Consolidated operating profit decreased to 32.9 billion yen from 336.7 billion yen, representing an operating profit margin of 0.5%. Consolidated net revenue decreased to 5.98 trillion yen, from 6.06 trillion yen. The company said its profitability was affected by higher selling expenses and inventory optimization efforts, particularly in the US, along with rising monozukuri costs.
Nissan has revised downward its full year outlook for fiscal 2024. The updated projections anticipate net revenue to be 12.7 trillion yen. Operating profit is expected to reach 150 billion yen. Previously, the company anticipated: net revenue of 14.0 trillion yen, and operating profit of 500.0 billion yen. Due to the revised forecast, the board of directors elected not to pay an interim dividend.
Nissan plans to reduce fixed costs by 300 billion yen and variable costs by 100 billion yen while maintaining a healthy free cash flow. To achieve this, Nissan will cut global production capacity by 20% and reduce global workforce by 9,000. CEO Makoto Uchida will voluntarily forfeit 50% of his monthly compensation starting in November 2024.
Separately, Nissan Motor Co. announced sale of up to 149,028,300 shares, or approximately 10.02% of Mitsubishi Motors Corporation the total number of issued shares, reducing its current 34.07% stake in MMC.
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