Nissan shares closed higher Thursday, despite the car maker reducing its full year profit outlook. Nissan now expects a full year profit of JPY565 billion in the fiscal year ending March 2018, down from total profits of JPY742.23 billion in 2016/17.
Nissan’s previous forecast for the fiscal year 2017/18 was JPY685 billion.
Nissan shares closed 1% higher at JPY1,164. Nissan shares have generally been on a steady incline for the past three months.
Nissan earnings details
Nissan reported that revenues in the nine months to the end of December 2017 grew 3.2% to JPY8,528 billion. Meanwhile, operating profits slid 27.6% to JPY364.2 billion.
Nissan said in its earnings release that its performance was impacted by vehicle inspection irregularities, along with other problems.
“During the period, the Group’s performance was adversely impacted by special items related to the final vehicle inspection issue in Japan, along with slowing sales growth, negative pricing trends and inventory adjustments in the US market,” the Nissan earnings press release states.
Detailed information shows that the sales incentives and other costs related to the US car sales market cost the Japanese car maker JPY41.8 billion. The vehicle inspection issues, meanwhile, weighed on profits by some JPY39.6 billion.
Nissan also reported that vehicle sales in the final three months of 2017 totalled 1.375 million, a little below the 1.38 billion sales in the same period a year earlier.
As well as lowering its profit guidance for the full year, Nissan is also now anticipating fewer car sales in company financial year which ends March 2018. Nissan now expects to sell 5.78 million vehicles, down from its previous forecast for 5.83 million units.
The main reason behind the expected slowdown is due to slower sales in Europe and Japan
“Given the performance in the first nine months of the year, the company has revised its full-year forecasts,” Nissan said.