Nissan continues long road to recovery, posts profit for first time since March 2019

For the first time in over three years
by Drei Laurel | 6 days ago
PHOTO: Nissan

If we’re talking about the global stage, things haven’t exactly gone smoothly for Nissan over the past couple of years. There was the whole Carlos Ghosn debacle that began in late 2018, then the COVID-19 pandemic started not long after.

How bad did things get for the Japanese carmaker? Just a year ago, it posted $1.38 billion (P72 billion) in operating losses due to supply chain issues and global chip shortages. Things are finally beginning to look up, though, with the brand having reported its first profit since March 2019.

Nissan was able to post a 2% operating margin and operating profit of 247.3 billion Japanese yen (around P100 billion) for the last fiscal year—this, despite “external factors” like COVID-19, continued automotive supply shortages, and the rising price of raw materials.

In its latest financial report, Nissan attributed its bounce-back year to favorable performance in the US market. It plans to carry on this success by bringing new models to the global stage in accordance with its Nissan Next transformation plan.

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The near future won’t be without its challenges, though. The brand expects a more “severe” operating climate for the 2022 fiscal year due to the conflict in Ukraine and the resurgence of COVID-19 in China.

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“However, with a stronger business foundation and continued transformation, Nissan aims to maintain an operating profit at the same level as fiscal year 2021 ensuring the momentum of products, improving quality of sales, and further strengthening financial discipline and control of fixed costs,” Nissan said in its report.

In a statement, Nissan CEO Makoto Uchida stressed the importance of continuing Nissan’s financial resurgence. The executive also expressed confidence that the company will be able to meet its future financial targets.

“Although we expect the business environment to become even more challenging, we are confident to achieve our transformation plan and ensure Nissan remains a truly healthy and resilient company that in any business environment can be financially stable and profitable, and can maintain sustainable growth. We will reassure the plan’s target of a 5% operating margin in fiscal year 2023,” he said.

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So, do you think Nissan will be able to keep this up despite the challenges it’s facing? Let us know in the comments.

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PHOTO: Nissan
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