Nissan Motor Co. cut its full-year profit forecast and warned of an annual loss, highlighting the Japanese automaker’s struggle to maintain sales without heavy discounting in key markets.
The company now expects an operating profit of ¥120 billion ($789 million) for the fiscal year ending March, down from its previous forecast of ¥150 billion. More notably, Nissan projects a net loss of ¥80 billion ($526 million), a sharp reversal from its earlier undisclosed profit target.
The deteriorating outlook follows a challenging third quarter where operating profit plunged 78% to ¥31.1 billion ($204 million). The Yokohama-based manufacturer has been forced to increase sales incentives to maintain market share, particularly in the US, while battling inflationary pressures across its operations.
Operating margin for the nine months through December contracted to 0.7% from 5.2% a year earlier, reflecting the heavy toll of marketing expenses on profitability. Net income for the period collapsed to ¥5.1 billion ($33.5 million) from ¥325.4 billion.
Despite generating slightly higher revenue in the third quarter at ¥3.16 trillion ($20.8 billion), up 1.6% year-on-year, the company reported a net loss of ¥14.1 billion as higher discounting and manufacturing costs offset the benefits of a weaker yen.
The revised forecast signals mounting challenges for Nissan’s efforts to balance volume growth with profitability, raising questions about its competitive position in key auto markets heading into 2025.
