TOKYO – Japanese carmaker Nissan said on Tuesday it recorded a net profit of 65.4 billion yen ($598 million) between April and September, marking a year-on-year 73.5 percent decline, mostly due to decreased sales.
During the first six months of the current fiscal year, Nissan posted an operating profit of 31.6 billion yen, 85 percent less than the previous year, the company said in a statement.
The Yokohama-based company’s revenue reduced by 9.6 percent to 5 trillion yen while its global unit sales between April and September stood at 2.5 million, a year-on-year decrease of 6.8 percent.
Nissan’s sales in Europe and the United States reduced by 19.7 percent and 4.3 percent respectively. However, they remained unchanged in China, its main market.
The weakening of demand “had a large effect on first-quarter (April-June) profitability,” according to the company.
Nissan also attributed the decline in its results to external factors such as exchange rate fluctuations, regulatory compliance expenses, increased raw material costs, and increased quality-related costs.
The Japanese company also published on Tuesday its forecast revisions for the current fiscal year, ending March 2020.
Nissan decided to reduce its net profit forecast to 110 billion yen, 35.3 percent less than its previous estimate.
Its operating profit would climb to 150 billion yen, 34.8 percent lower than the forecast, while sales revenue would go up to 11.3 trillion yen, 6.2 percent lower than estimated earlier.