Nissan Motor Co., Ltd. has revised its fiscal year 2024 forecast downward, announcing new financial results and a strategic turnaround plan aimed at stabilizing and resizing the business for sustainable growth.
Fiscal Year 2024 First-Half Financial Summary
For the six months ending September 30, 2024, Nissan reported a consolidated net revenue of 5.98 trillion yen, a drop of 79.1 billion yen year-over-year. Operating profit fell sharply by 303.8 billion yen to 32.9 billion yen, reducing the operating margin to just 0.5%.
Net income was also down, reaching 19.2 billion yen. Global sales volumes declined to 1.6 million units, affected by high selling expenses, inventory adjustments, and increased production costs, especially in the U.S.
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Second-Quarter Results
In the quarter ending September 30, 2024, Nissan’s net revenue stood at 2.99 trillion yen, with an operating profit of 31.9 billion yen. However, net income turned negative at -9.3 billion yen, reflecting ongoing financial pressures.
Revised FY2024 Outlook
Nissan now projects a full-year revenue of 12.7 trillion yen, down from the previous estimate of 14 trillion yen, with an expected operating profit of 150 billion yen. Net income remains undetermined as Nissan continues to assess costs related to the turnaround. Due to the revised forecast, the company has suspended its interim dividend, with future dividends dependent on business recovery.
Turnaround Measures
Amid a challenging financial landscape, Nissan has outlined an aggressive strategy to create a leaner, more resilient business:
- Stabilizing and Rightsizing the Business: Nissan plans to cut fixed costs by 300 billion yen and variable costs by 100 billion yen. Key actions include reducing global production capacity by 20% and workforce reductions totaling 9,000 positions. Additionally, CEO Makoto Uchida and other executives will voluntarily cut their salaries starting in November 2024 as part of a cost-saving commitment.
- Enhancing Product Competitiveness: Nissan aims to advance the rollout of new energy vehicles in China and expand its plug-in hybrid and e-POWER offerings in the U.S. The company also seeks to shorten vehicle development lead times to 30 months. Strengthening alliances with Renault, Mitsubishi, and Honda, Nissan will deepen technology collaboration and explore new partnerships in software and tech services.
To drive the turnaround, Nissan will appoint a Chief Performance Officer responsible for overseeing sales and profitability, effective December 1.
CEO Makoto Uchida emphasized that these restructuring measures are designed to make Nissan “leaner and more resilient,” aiming to bolster product competitiveness and return to a path of growth. This commitment reflects Nissan’s plan to adapt quickly to market changes and secure a profitable future.
For more on Nissan’s financial performance, visit their Investor Relations page.
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