YOKOHAMA (dpa-AFX) - Nissan Motor Co. (NSANF.PK, NSANY.PK) reported that, on TSE report basis - China JV equity basis, net income attributable to owners of parent was 5.15 billion yen for the nine months ended December 31, 2024 compared to 325.35 billion yen, last year. Earnings per share was 1.42 yen compared to 83.45 yen. Operating profit was 64.0 billion yen, down 86.6%.
Net sales were 9.14 trillion yen, compared to 9.17 trillion yen, previous year. Global retail sales volume of the Group decreased by 1.8% to 2,397 thousand units. The company said its net revenue and profits decreased year on year due to a decrease in unit sales, an increase in sales incentives, and inflation.
For the third quarter, on TSE report basis - China JV equity basis, net loss was 14.1 billion yen compared to profit of 29.1 billion yen, prior year. Net revenue was 3.16 trillion yen compared to 3.11 trillion yen, a year ago.
For fiscal 2024, on a TSE report basis - China JV equity basis, the company expects: basic loss per share of 22.31 yen, operating profit of 120.0 billion yen, and net sales of 12.5 trillion yen. Previously, the company projected operating profit of 150.0 billion yen, and net sales of 12.7 trillion yen. Also, the company projects a net loss of 80 billion yen for fiscal 2024.
Separately, Nissan announced it plans to optimize cost structure and reduce fixed and variable costs by a total of approximately 400 billion yen in fiscal 2026, which will reduce break-even point in the automotive business in fiscal 2026 from 3.1 million units to 2.5 million units. In terms of fixed costs, savings of approximately 200 billion yen are targeted from SG&A expenses, about 100 billion yen from restructuring the manufacturing base, and around 30 billion yen from development efficiencies. The company plans to reduce 2,500 global indirect employees.
Nissan plans to achieve approximately 100 billion yen in savings by consolidating production lines, adjusting shift patterns, and transferring jobs, starting with three plants in first quarter of fiscal 2025: Smyrna and Canton plants in the U.S., and in Thailand. This rightsizing will reduce headcount in vehicle and powertrain plants by 5,300 in fiscal 2025 and 1,200 in fiscal 2026, contributing to a total reduction of 6,500.
Nissan plans to reduce global production capacity by 20% and optimize manufacturing workforce by fiscal 2026. Including plants in China, Nissan is planning to reduce global production capacity from the current 5 million units to 4 million units by fiscal 2026.
Nissan's top management will adopt a single-layer, non-officer framework, reducing top management positions by 20%. Also, Nissan will conduct a strategic review in pursuit of partnership opportunities with the potential to significantly enhance the company's corporate value.
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