TOKYO, Nov 9 (Reuters) - Nissan Motor Co on Tuesday
raised its full-year operating profit outlook by a fifth as its
margins got a boost from newer models and lower sales incentives
due to tight supplies of vehicles.
Nissan like other big global carmakers has been forced to
cut production because of a shortage of semiconductors and other
components. But vehicle demand in key markets such as China and
the United States is growing as consumer spending rebounds
following a pandemic-induced slump.
"Two years ago, we had a problem of how to sell, and that is
not the problem today," Chief Operating Officer Ashwani Gupta
told a news conference.
Nissan had also benefitted as it revamps its aging model
line-up as part of a business plan to improve profitability by
global production and model types by a fifth, he added.
Nissan's break even point is now around 3.7 million vehicles
a year, down from 4.4 million, Chief Financial Officer Stephen
Nissan now expects a full-year operating profit of 180
billion yen ($1.59 billion) compared with an earlier prediction
for 150 billion yen. That is higher than a mean 161 billion yen
profit based on forecasts from 23 analysts, Refinitiv data
Last week, Honda Motor Co cut its full-year
operating profit outlook 15% to 660 billion because of the chip
shortage, while Toyota Motor Corp cut its annual
vehicle sales target and warned that the lack of semiconductors
still posed a risk to its production plans.
Nissan's Gupta cautioned that the lack of chips remained "a
challenge" as competition for the key component grows among
automakers and electronic device makers.
Japan's No. 3 carmaker lowered its global sales target to
3.8 million vehicles from 4.4 million.
Nissan posted an operating profit of 62.8 billion yen for
the three months to Sept. 30 compared with a loss of 4.8 billion
yen a year earlier. That result was better than an average 4.4
billion yen loss forecast from 10 analysts, Refinitiv data
($1 = 113.3500 yen)
(Editing by Jacqueline Wong)