Japan's automaker Nissan Motor Co boosted its profit forecast for the full year on Tuesday as it extracted more profit per vehicle, but cautioned that future earnings growth would be driven by access to rare semiconductors.
Because of a chip scarcity caused by Covid-19 supply chain problems and competition for the component from a variety of industries, Nissan, like other major global automakers, has been forced to reduce vehicle output, despite strong demand in important countries such as China and the United States.
"2022 will be driven by how many cars we can make, rather than how many we can sell," Nissan Chief Operating Officer Ashwani Gupta said at a briefing following its latest earnings announcement.
Chip shortages are expected to lessen in the second half of the current year, according to some automakers. However, some chipmakers who make chips for the auto industry have warned that a complete recovery in the supply of such chips could take much longer.
The company increased its operating profit prediction for the full fiscal year ending March 31 by 17 per cent to 210 billion yen ($1.82 billion), owing to cost reduction that enhanced margins and a weaker yen that boosted the currency value of overseas sales.
Refinitiv data reveals that this forecast is greater than a mean profit of 194 billion yen based on forecasts from 20 analysts.
Because there are fewer automobiles available for consumers to buy, Japan's No. 3 automaker has been earning more per car, as it no longer needs to give big financial incentives to entice buyers, particularly in the United States.
Japan's No. 3 carmaker, maintained its global full-year sales target of 3.8 million vehicles after cutting it from 4.4 million in November.
"I am hoping we can get more semiconductors," Nissan Chief Financial Officer Stephen Ma said at the briefing.
According to Refinitiv statistics, in the three months ended Dec. 31, the operating profit of the company nearly doubled to 52.2 billion yen ($451.8 million), which was much higher than the average 35.8 billion yen profit predicted by nine experts.
Retail volume declined 16.3 per cent year over year to 904,000 vehicles in the third quarter, with the greatest drop of 19.8 per cent in the United States.
(Source:www.bloomberg.com)
Because of a chip scarcity caused by Covid-19 supply chain problems and competition for the component from a variety of industries, Nissan, like other major global automakers, has been forced to reduce vehicle output, despite strong demand in important countries such as China and the United States.
"2022 will be driven by how many cars we can make, rather than how many we can sell," Nissan Chief Operating Officer Ashwani Gupta said at a briefing following its latest earnings announcement.
Chip shortages are expected to lessen in the second half of the current year, according to some automakers. However, some chipmakers who make chips for the auto industry have warned that a complete recovery in the supply of such chips could take much longer.
The company increased its operating profit prediction for the full fiscal year ending March 31 by 17 per cent to 210 billion yen ($1.82 billion), owing to cost reduction that enhanced margins and a weaker yen that boosted the currency value of overseas sales.
Refinitiv data reveals that this forecast is greater than a mean profit of 194 billion yen based on forecasts from 20 analysts.
Because there are fewer automobiles available for consumers to buy, Japan's No. 3 automaker has been earning more per car, as it no longer needs to give big financial incentives to entice buyers, particularly in the United States.
Japan's No. 3 carmaker, maintained its global full-year sales target of 3.8 million vehicles after cutting it from 4.4 million in November.
"I am hoping we can get more semiconductors," Nissan Chief Financial Officer Stephen Ma said at the briefing.
According to Refinitiv statistics, in the three months ended Dec. 31, the operating profit of the company nearly doubled to 52.2 billion yen ($451.8 million), which was much higher than the average 35.8 billion yen profit predicted by nine experts.
Retail volume declined 16.3 per cent year over year to 904,000 vehicles in the third quarter, with the greatest drop of 19.8 per cent in the United States.
(Source:www.bloomberg.com)
