Nissan Motor returned to an operating profit in the second quarter, reporting its best quarterly performance in more than a year last Thursday. The improvement was driven by efforts to reduce fixed costs under its ongoing restructuring plan, as well as strong sales in North America.
The company posted an operating profit of 51.5 billion yen (approx. 107 billion baht) for July–September, up 61% from 31.9 billion yen (around 6.6 billion baht) in the same period last year, and far exceeding analysts’ expectations. A survey of five analysts by LSEG had forecast an average operating loss of 70.9 billion yen (148 billion baht).
The result followed an operating loss in the first quarter and marked Nissan’s strongest single-quarter profit since the final quarter of fiscal 2023, when it posted 90.3 billion yen. Its performance in the first half of the year was also supported by one-off factors, such as lower costs related to U.S. emissions regulations.
Nissan CEO Ivan Espinosa said in a briefing that the company expects to perform even better in the second half of the fiscal year, supported by new product launches and the momentum built in Q2.
“We remain on track to bring operating profit back to break-even, excluding the impact of tariffs,” he said. “This is a transition year. The absolute numbers may not look great, but relative to the targets we set, we are moving in the right direction.”
The company is pushing forward with a major turnaround plan that includes reducing its global manufacturing sites from 17 to 10, and cutting 15% of its global workforce.
Nissan also maintained its previously announced forecast of a 275 billion yen operating loss for the full fiscal year through March 2026, due to U.S. tariff impacts and supply chain risks — particularly the shortage of semiconductor chips from Dutch supplier Nexperia.
Espinosa noted that North American sales were strong in the second quarter, supported by more focused marketing for regionally built models, streamlined dealer programs, and a greater emphasis on retail sales over fleet sales.
In Japan, however, first-half retail sales fell 16.5% as customers grew concerned about the company’s financial position. Even so, sentiment has begun to improve thanks to strong demand for the new Roox kei car.
Nissan is also set to reduce production of its popular Rogue SUV in Japan starting next week, due to the Nexperia chip shortage. In addition, the company will end production of Nissan vehicles at the COMPAS plant in Mexico, operated jointly with Mercedes-Benz, by the end of November.
On the same day, Nissan announced it had finalized a 97 billion yen deal to sell and lease back its global headquarters in Yokohama, securing a long-term arrangement that allows it to continue operations at the site.
Source: Reuters
