Nissan warns of flat profit as chip shortage becomes 'new normal'

Record ID: 1672749

  • Title: Nissan warns of flat profit as chip shortage becomes 'new normal'
  • Date: 12th May 2022
  • Summary: YOKOHAMA, JAPAN (FILE - MAY 21, 2021) (REUTERS) VARIOUS OF EXTERIORS OF NISSAN MOTOR HEADQUARTERS NISSAN LOGO AND SIGNAGE ON EXTERIOR OF BUILDING YOKOHAMA, JAPAN (FILE - MAY 21, 2021) (REUTERS) VARIOUS OF NISSAN'S "NOTE" COMPACT CARS EQUIPPED WITH E-POWER HYBRID TECH DISPLAYED IN SHOWROOM NISSAN VEHICLES IN SHOWROOM / RECEPTION DESK NISSAN LOGO KAMINOKAWA, TOCHIGI PREFECTU
  • Embargoed: 26th May 2022 13:51
  • Keywords: COVID Japan Nissan Ukraine automobile earnings semiconductor shortage supply chain
  • Location: YOKOHAMA, JAPAN
  • City: YOKOHAMA, JAPAN
  • Country: Japan
  • Topics: Asia / Pacific,Company News Markets,Economic Events
  • Reuters ID: LVA002741912052022RP1
  • Aspect Ratio: 16:9
  • Story Text:Nissan Motor Co on Thursday (May 17) forecasted flat operating profits for the fiscal year of 2022, far below analysts' expectations, as Japan's third-biggest carmaker grapples with a global chip shortage, rising material costs and China's COVID restrictions.
    Nissan joins a growing list of global companies warning about worsening profitability as they cannot fully pass on soaring input costs to consumers and are bracing for more supply chain hold-ups following the Ukraine conflict and prolonged COVID lockdowns in China.
    During the earnings news conference on Thursday, Nissan Chief Operating Officer Ashwani Gupta said semiconductor shortage had become a "new normal", adding that the market is still facing unprecedented uncertainty.
    Nissan expects sales to rise by 18.7% in the current financial year to 10 trillion yen ($77.6 billion). But operating profit would grow just 1% to 250 billion yen, below the 318.5 billion yen mean estimate from 19 analysts polled by Refinitiv.
    Nissan said it expected raw material and logistics costs to increase by about 1.5 times to 212 billion yen ($1.65 billion) in the fiscal year that started in April, with more than half due to steel and aluminum. It also projected an additional 45 billion yen in logistics cost increases for the current year.
    (Production: Irene Wang)
  • Copyright Holder: FILE REUTERS (CAN SELL)
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